The short answer
An escrow deposit is buyer money held by a neutral third party — typically a title company or closing attorney — under the terms of the purchase contract. It secures the contract, cannot be released to either party without authorization or a resolved dispute, and is applied to your costs at closing. In Florida the escrow holder must follow the contract and applicable escrow rules, not simply the seller's request.
- Held by
- Title co. or attorney
- Purpose
- Secures the contract
- Released when
- Closing or agreement
- Disputes
- Follow contract terms
01
Escrow deposit vs. earnest money
The terms overlap. Earnest money describes the purpose — good faith — while escrow deposit describes where it lives. In Florida contracts you will see both used for the same funds. The negotiating side is covered in what earnest money is.
02
How the money moves
| Stage | What happens | Timing |
|---|---|---|
| Delivery | Buyer wires funds to escrow holder | Usually within 3 days |
| Receipt | Escrow holder confirms in writing | Same or next day |
| Holding | Funds sit in a trust account | Through escrow period |
| Credit | Applied on the Closing Disclosure | At closing |
| Refund | Released per contract or agreement | After proper cancellation |
03
Wire fraud is the real risk
- Call the closing agent at a number you independently verified
- Confirm wire instructions verbally before sending anything
- Treat emailed changes to wire instructions as fraud until proven otherwise
- Send a small test or confirm receipt immediately after wiring
- Keep the written receipt with your contract file
04
What happens in a dispute
If both parties claim the funds, the escrow holder cannot simply pick a side. The contract governs, and unresolved disputes move to the process the contract specifies — often written demand, then mediation or a court determination. That process takes time, which is why clean written cancellations matter.
05
Do not confuse it with escrow for taxes and insurance
Lenders also use the word escrow for the monthly account that holds your property taxes and insurance after closing. Different thing entirely — the upfront funding of that account is a closing cost, itemized in what closing costs are when buying a house, and paid at the closing itself.
Escrow handling varies by closing agent, so ask which title companies real estate companies in Hollywood, FL rely on and why — responsiveness on estoppels and payoffs decides whether you close on time.
The same rules apply for clients across Dania Beach and Plantation and the surrounding South Florida communities.