Escrow Deposit Disputes in Florida: What Happens When Both Sides Demand the Money

Published October 9, 2026 · Recalde & Friedman, PLLC

Who holds the deposit

In most Florida residential sales, the deposit is held by either a title agent or attorney acting as escrow agent or a real estate broker. Different rules apply to each, so the first question in any dispute is who is holding the money.

Funds a title agency holds in escrow are trust funds, and they must be placed in a financial institution located in Florida that is FDIC- or NCUSIF-insured (§ 626.8473, Fla. Stat.). Brokers must follow chapter 475 and Florida Real Estate Commission (FREC) rules.

What the contract says

Paragraph 13 of the Florida Realtors/Florida Bar AS IS contract, Escrow Agent, gives the escrow agent several options when it receives conflicting demands or has a good-faith doubt about who is entitled to the deposit:

• continue to hold the funds until the parties agree on disbursement or a court enters a final judgment; or
• deposit the funds with the clerk of the circuit court that has jurisdiction over the dispute.

Once the escrow agent notifies the parties of that action, its liability ends, except for accounting for items already released. If the agent is a licensed broker, it must follow chapter 475 and FREC rules to resolve the dispute by mediation, arbitration, interpleader, or an escrow disbursement order. An escrow agent drawn into litigation or one that interpleads the funds recovers reasonable attorney's fees and costs out of the escrowed funds, under court order.

Broker escrow: the FREC procedure

When a broker receives conflicting demands or has a good-faith doubt, § 475.25, Fla. Stat.(1)(d)1 requires the broker to promptly notify the FREC in writing and use one of four settlement procedures:

1. request an escrow disbursement order from the FREC;
2. with the parties' consent, submit the matter to arbitration;
3. file an interpleader action in court; or
4. with the parties' consent, submit the matter to mediation, which must be completed within 90 days after the last demand or the broker must use another procedure.

FREC Rule 61J2-10.032 sets the deadlines. The broker must notify the Commission within 15 business days after the last party's demand (or after a good-faith doubt arises) and must start a settlement procedure within 30 business days. The rule also lets a broker send a certified or emailed notice to a party who doesn't respond. If that party doesn't respond within seven business days, the broker may release the funds to the other party.

The statute also lists situations where a broker may return a deposit to the buyer without notifying the FREC, including when a buyer, in good faith, fails to satisfy the terms of the contract's financing clause, or when a condominium buyer delivers written notice cancelling under § 718.503, Fla. Stat..

Buyer and seller timeline

Paragraph 16, Dispute Resolution, gives the parties 10 days after conflicting demands to try to resolve the dispute. After that, they must go to mediation before suing. In litigation, Paragraph 17 awards the prevailing party reasonable attorney's fees and costs.

How disputes usually end

• A signed release that splits or allocates the deposit. This is the most common result. See our release checklist.
• Mediation.
• Interpleader. The escrow agent deposits the funds with the court and steps out. Fees come out of the deposit, which shrinks what is left to fight over.

Hypothetical: whose deadline?

A buyer's lender issues a conditional approval near the end of the Loan Approval Period. The buyer sends a termination notice one day after the period ends, and the seller demands the deposit. The answer depends on the financing provision and the deadline rules: whether notice was timely under Paragraph 8(b) and Standard F, and whether the buyer had already given the 8(b)(iii) notice. See conditional approval vs. loan commitment and counting deadlines.

Practical tips

• Send demands in writing to the escrow agent and the other party, and cite the contract paragraph you rely on.
• Don't expect the escrow agent to judge who is right. Its job is to follow the contract and the law.
• Agents: preserve your file, including texts and emails. Deadlines and notices are usually what decide these disputes.

Frequently asked questions