How much earnest money is normal in Florida?

Commonly 1% to 5% of the purchase price. Two to three percent is standard in most Hollywood transactions, with larger deposits used to strengthen offers in competitive situations.

Is earnest money refundable?

Yes while you are inside your contract contingencies — typically the inspection period and any financing or appraisal contingency — and you cancel in writing on time. Outside those windows it is generally at risk.

Who holds earnest money?

A neutral escrow holder such as the title company, closing attorney, or brokerage escrow account. Never give the funds directly to the seller.

When is earnest money due?

Usually within three days of contract execution, though the exact deadline is written into your contract. Late delivery is itself a default, so wire early.

Does earnest money go toward the down payment?

Yes. It is credited on the Closing Disclosure against your down payment and closing costs, reducing the amount you wire at closing.

What Is Earnest Money? | Mora Realty Hollywood

The short answer

Earnest money is the good-faith deposit you put up when a seller accepts your offer, showing you intend to close. In Florida it usually runs 1% to 5% of the purchase price, is delivered to a neutral escrow holder within a few days of contract execution, and is credited toward your down payment and closing costs at closing. It is refundable while you are inside your contract contingencies and at risk once those windows close.

Typical amount: 1%–5% of price
Delivery deadline: Often 3 days
Held by: Escrow agent
At closing: Credited to you

It is not an extra cost

Earnest money is early money, not additional money. It appears as a credit on your Closing Disclosure and reduces the cash you wire at closing. See the full cash picture in how much money you need to buy a house.

How much to put down

Deposit size and how it reads in negotiation
Deposit	Signal to seller	When it fits
1% of price	Minimum commitment	Slow market, cautious buyer
2%–3%	Standard and credible	Most transactions
5% or more	Strong, confident buyer	Competitive multiple-offer situations
Staged deposits	Commitment increases over time	Longer escrows and new construction

When it is refundable

You cancel inside the inspection period per the contract
Your financing contingency fails and you notify on time
The appraisal contingency is triggered and properly exercised
Association approval is denied where the contract requires it
The seller cannot deliver clear title or defaults

How buyers actually lose it

Missing a contingency deadline by even one day
Cancelling for a reason the contract does not cover — cold feet
Failing to apply for financing or provide lender documents
Walking after the inspection period ends over an issue found late
Not delivering the deposit on time, which itself is a default

Where the money sits

Never hand a deposit directly to a seller. It goes to a neutral escrow holder — usually the title company or closing attorney — and disputes are resolved under the contract's escrow provisions. Mechanics are covered in what an escrow deposit is, and the deadlines in what happens after your offer is accepted.

Deposit size and escrow language are negotiable, so review the contract with real estate brokers in Hollywood, FL before you wire funds — the protection lives in the contingency wording, not the dollar amount.

The same rules apply for clients across Aventura and Hallandale Beach and the surrounding South Florida communities.

What Is Earnest Money?

It is not an extra cost

How much to put down

When it is refundable

How buyers actually lose it

Where the money sits

Ask a licensed Hollywood, FL real estate agent directly

Earnest Money FAQs

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