Is earnest money confusing you as you plan a home purchase in Pace? You are not alone. This small but important deposit can shape how strong your offer looks and how protected your money is if something goes wrong.
In this guide, you will learn what earnest money is, how much buyers in Pace usually put down, when it is due, who holds it, and when you can get it back. You will also get safety tips to avoid wire fraud and a quick checklist to stay on track. Let’s dive in.
What earnest money is
Earnest money is a good‑faith deposit you include with a signed purchase contract. It shows the seller you intend to close and it counts toward your cash to close at settlement.
Florida purchase contracts spell out how the deposit is handled and what happens if a deal falls through. For a plain‑English overview, review the consumer resources from Florida Realtors and buyer basics from the National Association of Realtors.
How much earnest money in Pace
There is no fixed amount required by Florida law. The deposit is negotiated and often stated as a flat dollar amount or a percent of the price.
As a general Pace guideline, many buyers budget $1,000 to $5,000 on typical single‑family homes when the market is steady. A common rule of thumb is about 1% of the price. In a competitive situation, buyers sometimes offer 2% to 3% or more to strengthen their offer. New construction or higher‑priced homes may use larger or staged deposits.
Always confirm current norms for your price range. Local supply, season, and competition can shift what is considered strong.
When you pay and who holds it
Your contract will state when the deposit is due. In many Florida deals, the earnest money is due upon contract execution or within a few business days of acceptance. Read your timelines carefully and follow them.
In Florida, the earnest money is commonly held by a title company or closing agent in an escrow account. Sometimes a real estate broker or an attorney’s trust account will hold the funds. Brokers and attorneys must follow state escrow rules, with oversight from the Florida Department of Business and Professional Regulation and the Florida Real Estate Commission and trust‑account guidance from The Florida Bar.
Ask for a written receipt and confirmation showing who holds the funds, where they are held, and how they will be applied at closing.
Contingencies that protect your deposit
Your protections come from contingencies written into the contract and the deadlines tied to them. Common buyer protections include:
- Inspection contingency. You get a short window, often about 7 to 15 days, to inspect and cancel if needed.
- Financing contingency. If you cannot secure your loan within the agreed time, you can usually cancel and keep your deposit.
- Appraisal contingency. If the appraisal comes in low and you cannot reach new terms, you may cancel under this contingency.
- Title and HOA review. Serious title defects or HOA issues can be grounds to terminate and recover your deposit.
- Sale‑of‑home contingency. Used when you must sell another property first, though sellers may be less open to this in competitive markets.
Always follow your contract’s notice steps in writing before deadlines.
When you may lose earnest money
If you miss a deadline or cancel without an applicable contingency, you may be in default. Many Florida contracts allow the seller to keep the deposit as liquidated damages if the buyer breaches and that remedy is selected.
Other outcomes exist, such as specific performance or claims for additional damages, but these are less common and can involve lengthy dispute paths. The exact remedies depend on your signed contract terms and Florida law. For high‑level statutory references about broker and escrow requirements, see the Florida Legislature.
How refunds and disputes work
If you cancel within a valid contingency and follow the notice rules on time, the escrow holder typically refunds your deposit. The process depends on who holds the funds and the contract’s disbursement clause.
If there is a dispute, the escrow holder follows the contract and applicable rules. Brokers must follow FREC procedures for disputed escrow funds, and may notify the state or file an interpleader if the parties cannot agree. You can review regulatory oversight at myfloridalicense.com and general contract resources at Florida Realtors.
Wire‑fraud safety for Pace buyers
Wire‑fraud attempts are common nationwide. Protect your money with a few simple steps:
- Verify wiring instructions by calling the title company at a known, trusted phone number. Do not rely on email alone.
- Confirm any change to wiring instructions by phone with the closing agent before sending funds.
- Be cautious with email attachments and links. If anything looks off, stop and call.
For official guidance and alerts, review the FBI’s Internet Crime Complaint Center and the Federal Trade Commission’s consumer advice.
Multiple‑offer strategies in Pace
In multiple‑offer settings, a larger deposit or faster deposit timeline can help your offer stand out. Some buyers offer a non‑refundable portion after the inspection window closes. These approaches carry more risk, so weigh them carefully and follow the contract steps closely.
If you are relocating and buying from a distance, use a local title company and an agent who will keep you on schedule. Confirm who holds your funds, how you will deliver them securely, and how notices will be handled if you are remote.
Quick Pace buyer checklist
- Confirm the deposit amount and whether it is a flat sum or a percent of price.
- Confirm when the deposit is due and get it in writing.
- Confirm who holds the funds and get a receipt.
- Track contingency deadlines and the exact notice steps for inspection, financing, appraisal, title, and HOA.
- Use a neutral escrow holder, such as a title company or attorney, when possible.
- Protect against wire fraud by verifying wiring instructions by phone using a trusted number.
- Keep all receipts and written notices until closing.
Final thoughts and next steps
Earnest money is a small part of your budget with a big impact on your leverage and protection. In Pace, most buyers can plan for $1,000 to $5,000 as a starting point, then adjust based on price, competition, and contract strategy. The best move is to match your deposit to your goals and keep every deadline and notice step on track.
If you want local guidance from offer to closing, reach out to Kathryn Paro for a Pace‑focused plan, secure deposit handling, and clear timelines from day one.
FAQs
What is earnest money in a Florida home purchase?
- It is a buyer’s good‑faith deposit applied to closing that shows commitment and is governed by the contract’s terms and contingencies.
How much earnest money do Pace buyers usually put down?
- A common local range is $1,000 to $5,000, with 1% of price as a rule of thumb and higher percentages in competitive situations.
When is earnest money due after my offer is accepted?
- Many Florida contracts require payment upon execution or within a few business days, but your exact deadline will be stated in the contract.
Who holds the earnest money in Florida?
- A title company or closing agent commonly holds funds in escrow, though a broker or attorney trust account may also be used under state rules.
When can I get earnest money back if the deal falls through?
- If you cancel within a valid contingency and meet notice deadlines, the escrow holder typically refunds your deposit according to the contract.
What happens if there is a dispute over my deposit?
- The escrow holder follows contract and state procedures; broker‑held funds follow FREC rules, and unresolved disputes may go to mediation, arbitration, or court.
How do I avoid wire fraud when sending earnest money?
- Call the title company using a trusted number to verify wiring instructions, and confirm any changes by phone before you send funds.
