How long does a Florida broker have to deposit escrow funds?

Under Rule 61J2-14.010, the broker must deposit funds "immediately" — defined as no later than the end of the third business day after receipt. Saturdays, Sundays, and legal holidays are not business days. A sales associate who receives a deposit must deliver it to the broker by the end of the next business day, and the sales associate's receipt counts as the broker's receipt for the 3-business-day clock.

What happens when a buyer and seller both claim the escrow deposit?

The broker must (1) provide written notification to FREC within 15 business days of the last conflicting demand and (2) institute one of four settlement procedures within 30 business days. The procedures are: request an Escrow Disbursement Order from FREC; submit to mediation (with written consent of all parties; 90-day cap); submit to arbitration (with written consent of all parties); or file litigation, typically interpleader, depositing the funds with the court.

Who can request an Escrow Disbursement Order?

Only the broker holding the disputed funds. A co-broker, attorney, or other agent cannot file the EDO request on the broker's behalf. The request is deemed instituted when the completed request form is mailed or otherwise dispatched to FREC under Rule 61J2-10.032(4).

How long does the broker have for mediation?

Mediation is one of the four settlement procedures but it requires the written consent of all parties. If the broker submits the dispute to mediation, the mediation must be completed within 90 days after the last conflicting demand. If mediation is not completed within 90 days, the broker must switch to one of the other three procedures (EDO, arbitration, or litigation).

Does the broker have to send the monthly reconciliation to FREC?

No. Monthly reconciliations under Rule 61J2-14.012 must be prepared and kept on file but are not sent to FREC routinely. They become highly relevant during a DBPR office audit — failure to produce monthly reconciliations is itself a separate violation. Trust-account records must be kept for 5 years.

Florida Broker Escrow and Trust Account Rules — Rule 61J2-14, §475.25, and the 3/15/30 Timeline

TL;DR

Florida brokers who hold trust funds must follow strict rules under Florida Statute §475.25(1)(k) and Florida Administrative Code Rule 61J2-14. Funds must be deposited "immediately" — defined as no later than the end of the third business day after receipt (Saturdays, Sundays, and legal holidays don't count). A sales associate who receives a deposit must deliver it to the broker by the end of the next business day. When conflicting demands or a good-faith doubt arises about who is entitled to escrowed funds, the broker must notify FREC in writing within 15 business days and institute one of four settlement procedures within 30 business days: Escrow Disbursement Order (EDO), mediation, arbitration, or litigation (interpleader). The broker — not a co-broker or attorney — must request the EDO. Mediation and arbitration require written consent of all parties; mediation must finish within 90 days. Brokers must also keep monthly reconciliation statements (Rule 61J2-14.012), maintain proper trust-account signature authority, and never commingle personal funds with escrowed money. Violations carry fines up to $5,000 per offense and can lead to license suspension or revocation under §475.25.

The Source of Trust-Account Rules in Florida

Florida's escrow framework is a layered system. The substantive obligations live in Chapter 475 of the Florida Statutes (the Real Estate License Law), most importantly §475.25(1)(d) (failure to account for trust funds) and §475.25(1)(k) (failure to immediately place funds in escrow). The detailed mechanical rules live in Chapter 61J2 of the Florida Administrative Code, which is the rule chapter the Florida Real Estate Commission (FREC) issues under its delegated authority. Within Chapter 61J2, two sub-chapters matter most for trust funds: 61J2-14 (Funds Entrusted to Brokers — Deposits and Escrows) and 61J2-10.032 (Notice Requirements when conflicting demands arise).

The basic structural principle is that escrow funds are held for the parties according to the contract; the broker does not own them and cannot use them. The broker holds the funds in a fiduciary capacity, with the disposition determined by the contract's terms, the parties' agreement at closing, or — when disputes arise — one of the four settlement procedures described below. Commingling escrowed funds with the broker's operating funds is a classic violation that triggers immediate FREC discipline.

The "Immediately" Rule — End of the Third Business Day

Florida Administrative Code Rule 61J2-14.010 requires every broker who receives funds from a sales associate, principal, prospect, or any other person interested in a real estate transaction to "immediately" place the funds in an authorized depository — a bank, savings and loan, trust company, credit union, or title company with trust powers — in an insured escrow or trust account.

The word "immediately" is defined elsewhere in the rule chapter: it means no later than the end of the third business day following receipt. Saturdays, Sundays, and legal holidays are not business days. So if a broker receives a check on a Friday afternoon, the deposit must be in the trust account by close of business the following Wednesday: Monday is the first business day following receipt, Tuesday is the second, and Wednesday is the third. Saturdays, Sundays, and legal holidays do not count.

For sales associates, Rule 61J2-14.009 is stricter: any sales associate who receives a deposit must deliver it to the broker (or employer) by the end of the next business day. The sales associate's receipt counts as the broker's receipt for purposes of the 3-business-day deposit clock, so the broker should design office procedures that get deposits from sales associates into the trust account quickly. The 3-day clock starts when anyone in the brokerage receives the funds, not when they reach the broker's desk.

Account Setup and Signature Authority

Rule 61J2-14.010 requires that the broker be a signatory on every trust account. If a brokerage entity has more than one licensed broker, one broker may be designated as the signatory of record for the trust account, but a sales associate cannot be the sole signatory. Personal funds of any licensee cannot be deposited or commingled with escrow funds. The narrow exception under Rule 61J2-14.010(2) allows limited broker or brokerage funds for account maintenance: up to $1,000 in each sales escrow account and up to $5,000 in each property-management escrow account, with personal or brokerage funds in any escrow account capped at $5,000.

Interest-bearing trust accounts are permitted, but the broker must have the written permission of all parties whose funds are in the account, the permission must specify who receives the interest and when, and the funds must remain available to the parties without penalty when needed. Without explicit written authorization, the broker cannot place the funds in an interest-bearing account.

Monthly Reconciliations Under Rule 61J2-14.012

Every broker who maintains a trust account must reconcile the account at least once per month. The reconciliation must compare the broker's records, the depository's bank statement, and a separate written record of the liabilities (the funds owed to each principal). Florida Realtors publishes a Monthly Reconciliation Statement form that walks brokers through the required entries.

The reconciliation is not filed with FREC routinely. It is, however, the first record a DBPR auditor will request during an office audit, and inability to produce monthly reconciliations is a separate violation. Brokers must keep trust-account records for at least 5 years.

Conflicting Demands and the Four Settlement Procedures

When escrow funds are subject to conflicting demands — buyer claims the deposit, seller claims the deposit — or when the broker has a good-faith doubt about who is entitled to the funds, Rule 61J2-10.032 imposes a two-step timeline. (The broker's neutrality here applies regardless of whether the broker is operating as a transaction broker or single agent for either party — the trust-fund obligations sit on top of any agency relationship.)

15 business days to provide written notification to FREC of the conflicting demands or the broker's good-faith doubt. The clock starts on the date the broker received the last demand (or the date the broker first formed the good-faith doubt).
30 business days from the same date to institute one of the four settlement procedures listed in §475.25(1)(d)1.

The four settlement procedures are:

Request an Escrow Disbursement Order (EDO). The broker — and only the broker — files a written request asking FREC to determine who is entitled to the disputed funds. A co-broker, attorney, or other agent cannot file the EDO request on the broker's behalf. The request is deemed instituted when the completed form is mailed or otherwise dispatched to the Commission.
Submit to mediation. All parties must consent in writing before the broker can submit the dispute to mediation. If mediation is not completed within 90 days after the last demand, the broker must abandon mediation and institute one of the other three procedures.
Submit to arbitration. All parties must consent in writing. Unlike mediation, arbitration produces a binding decision the parties have already agreed to follow.
File litigation (typically interpleader). The broker files an interpleader action or other lawsuit asking the court to determine entitlement and deposits the funds with the court registry. This is the fallback when the parties cannot agree to mediation or arbitration and the broker prefers not to involve FREC directly.

Several special rules apply once a settlement procedure is underway. If the broker requests an EDO and FREC decides not to issue the order, the broker has 30 business days to institute another procedure. If the broker requests an EDO and the dispute settles or is taken to court before FREC issues the order, the broker must notify FREC in writing within 10 business days of that event. And if one party simply does not respond to the broker's inquiry about whether they are claiming the funds, the broker can send a certified Notice (with return receipt requested) to the non-responding party's address of record — and the Notice has a defined effective date for clock-running purposes.

When Notification Is NOT Required

The 15-business-day notification rule applies only when (a) there are actually conflicting demands, or (b) the broker has a good-faith doubt about entitlement. A failed transaction without a dispute does not trigger the notification rule. If the contract simply terminates and both parties agree on the disposition of the deposit, the broker disburses according to the parties' instructions without notifying FREC.

The rule also does not apply to title companies holding escrow. §61J2-10.032(1)(a) is a real estate broker rule, not a general escrow rule. If the title company holds the deposit and the dispute arises, the title company's internal procedures and the contract's escrow language govern — typically the title company will require a fully executed release and cancellation from both parties before disbursing, and absent agreement will interplead the funds into the court registry.

Penalties for Trust-Account Violations

Trust-account violations are among the most serious enforcement priorities for FREC. Under §475.25, FREC can impose administrative fines of up to $5,000 per offense, suspend a license for up to 10 years, or revoke a license entirely. The most common pattern of cases involves either (1) late deposit (broker held the check more than 3 business days), (2) commingling (broker mixed escrow with operating funds), or (3) failure to institute one of the four settlement procedures within 30 business days of conflicting demands. None of these violations require any actual loss to a buyer or seller — the violation is in the broker's handling of the funds itself, not in any resulting damage.

Trust-account audits are unannounced. DBPR investigators arrive at the broker's office, demand the trust-account ledger, bank statements, monthly reconciliations, signature cards, and the broker's written escrow procedures. Inability to produce any of these is its own violation. For more on FREC's broader enforcement structure, see our guide to the FREC/DBPR licensing and enforcement framework.

FAQ

How long does a Florida broker have to deposit escrow funds?: Under Rule 61J2-14.010, the broker must deposit funds "immediately" — defined as no later than the end of the third business day after receipt. Saturdays, Sundays, and legal holidays are not business days. A sales associate who receives a deposit must deliver it to the broker by the end of the next business day, and the sales associate's receipt counts as the broker's receipt for the 3-business-day clock.
What happens when a buyer and seller both claim the escrow deposit?: The broker must (1) provide written notification to FREC within 15 business days of the last conflicting demand and (2) institute one of four settlement procedures within 30 business days. The procedures are: request an Escrow Disbursement Order from FREC; submit to mediation (with written consent of all parties; 90-day cap); submit to arbitration (with written consent of all parties); or file litigation, typically interpleader, depositing the funds with the court.
Who can request an Escrow Disbursement Order?: Only the broker holding the disputed funds. A co-broker, attorney, or other agent cannot file the EDO request on the broker's behalf. The request is deemed instituted when the completed request form is mailed or otherwise dispatched to FREC under Rule 61J2-10.032(4).
How long does the broker have for mediation?: Mediation is one of the four settlement procedures but it requires the written consent of all parties. If the broker submits the dispute to mediation, the mediation must be completed within 90 days after the last conflicting demand. If mediation is not completed within 90 days, the broker must switch to one of the other three procedures (EDO, arbitration, or litigation).
Can a broker keep personal funds in the trust account?: Generally no — commingling personal funds with escrow funds is a serious violation. The narrow exception under Rule 61J2-14.010(2) allows the broker to keep limited broker or brokerage funds for account maintenance: up to $1,000 in each sales escrow account and up to $5,000 in each property-management escrow account, with personal or brokerage funds in any escrow account capped at $5,000. Beyond those limits, personal funds may not be deposited or intermingled.
Does the broker have to send the monthly reconciliation to FREC?: No. Monthly reconciliations under Rule 61J2-14.012 must be prepared and kept on file but are not sent to FREC routinely. They become highly relevant during a DBPR office audit — failure to produce monthly reconciliations is itself a separate violation. Trust-account records must be kept for 5 years.

Bottom Line

Florida's trust-account framework is built around three numbers a broker must memorize: 3 business days to deposit funds after receipt (Rule 61J2-14.010); 15 business days to notify FREC of conflicting demands (Rule 61J2-10.032); and 30 business days to institute one of the four settlement procedures — EDO, mediation, arbitration, or litigation. Sales associates have a tighter clock — the end of the next business day to hand the deposit to the broker — and the sales associate's receipt counts as the broker's for the 3-day clock. Mediation must be completed within 90 days. Only the broker (not a co-broker or attorney) can request an Escrow Disbursement Order. Trust-account audits are unannounced and the most common violations are late deposit, commingling, and failure to institute a settlement procedure within 30 business days. For the licensee-level duties that wrap around these trust-account mechanics, see our guide to Florida sales associate licensing and compliance.

Source: Florida Statutes §475.25 — Discipline; Trust Funds · Florida Administrative Code Rule 61J2-14 — Funds Entrusted to Brokers · Florida Realtors — Florida's Escrow Laws & Rules