The term “immediately” means “within three business days” regarding the depositing of escrow funds in Florida. A broker must deposit escrow funds into an insured escrow or trust account at a bank, savings and loan association, trust company, credit union or title company. Per Florida Administrative Codes, at least one broker must sign off on an escrow account.
Property or money held in escrow means that a third party is overseeing the holding of the funds or property on behalf of transacting parties, which, in real estate, are typically the buyer and seller. If a brokerage is maintaining an escrow account, the agency must produce a monthly reconciliation statement. Even if a certified public accountant prepares the statement, the brokerage is ultimately responsible for the funds in the escrow account.
When escrow conflicts arise, sparking real estate disputes
If a demand is made for funds or property held in escrow, the broker in question must notify the Florida Real Estate Commission. A brokerage typically has 15 days to do so. If transacting parties do not submit matching written instructions for the release of the deposit, legal steps may be taken.
If an escrow dispute exceeds $50,000 in property or funds, the deposit will be transferred to the local clerk of courts. An ongoing dispute does not prohibit a seller from advertising or selling the house or land for sale. Escrow disputes are often complex, which is why it is wise to seek assistance from a real estate attorney when a dispute arises.