Planning to buy in Boca Raton and hearing a lot about escrow deposits? You’re not alone. This small but important piece of your offer can shape whether a seller takes you seriously and how protected your money is during the process. In this guide, you’ll learn how escrow deposits work in Florida, how much to offer in Palm Beach County, what makes your deposit refundable, and how to keep it safe. Let’s dive in.
What escrow deposit means in Florida
An escrow deposit, also called earnest money, is your good‑faith money placed after your offer is accepted. It shows the seller you’re committed and is credited to your closing costs or down payment. Your purchase contract controls how the funds are handled and when they are refundable.
In Florida, the escrow holder is typically a title or closing company, or a closing attorney. Some brokers hold escrow funds if they maintain an escrow account and follow state rules, but many local transactions rely on title companies for this step. The Florida Realtors and Florida Bar contract forms outline when the deposit is due, what happens if timelines are missed, and how disputes are resolved.
Escrow accounts must follow Florida trust accounting rules. The escrow agent holds your funds and releases them only under the contract’s instructions or mutual written agreement from buyer and seller.
How much to offer in Boca Raton
Across many markets, earnest money commonly ranges from 1–3% of the purchase price. In Boca Raton’s move‑up and luxury segments, sellers may expect a stronger show of commitment, especially for new or highly desirable listings.
Here are simple examples to help you frame expectations:
- $700,000 purchase price: 1% is $7,000; 2% is $14,000.
- $1,500,000 purchase price: 1% is $15,000; 2% is $30,000.
- $3,000,000 purchase price: 1% is $30,000; 2% is $60,000.
Some higher‑end deals use a flat number instead of a percentage, such as $25,000 or $50,000. Your final number depends on the home’s price point, competitiveness, and your liquidity.
A popular tactic is a staggered structure. You make a smaller initial deposit quickly after the contract is effective, then add a second deposit after you finish inspections. This approach balances seller confidence with buyer protection.
When your deposit is refundable
Your contract will define refundability. Common contingencies that protect your earnest money include:
- Inspection: If you terminate within the inspection period stated in your contract, the deposit is typically refundable.
- Financing: If you cannot obtain loan approval and follow notice requirements on time, your funds are usually protected.
- Appraisal: If the property does not appraise at contract price and you cannot reach a solution, you may cancel consistent with the contract and recover your deposit.
- Title and HOA review: If documents reveal issues and the contract gives you the right to cancel, you can typically recover your funds.
You can lose your deposit if you miss deadlines or default after removing contingencies. Most releases happen by mutual written agreement, but if buyer and seller disagree, the escrow holder will follow the dispute procedures in the contract. That can include mediation, arbitration, or court action, and the escrow company may hold the funds until the dispute is resolved.
Key timelines in Palm Beach County
Timelines are negotiated, but here are common ranges you’ll see in Boca Raton:
- Initial deposit delivery: Often due within 1–3 business days after the contract becomes effective.
- Inspection period: Typically 7–15 days. Larger or unique homes may need more time.
- HOA document review: Buyers often have 5–10 days to review once delivered.
- Appraisal: Usually 7–14 days after it’s ordered, longer for unique luxury properties.
- Financing approval: Often 30–45 days for conventional loans; jumbo loans can take 45+ days.
- Closing disclosure: Your lender must provide the Closing Disclosure at least 3 business days before closing.
- Closing: Financed deals often close in 30–60 days. Cash deals can close in 7–21 days if title is ready.
Local factors that can add time include hurricane‑season insurance logistics, flood or wind policy quotes, HOA approvals and fees, complex title issues, and appraisal challenges for high‑end homes with fewer comparable sales.
Protect your money: practical tips
- Write strong but clear contingencies. Spell out inspection, financing, appraisal, and relevant HOA or title conditions in the contract.
- Watch every deadline. Put reminders on your calendar for inspections, loan milestones, and any notice dates.
- Confirm wiring instructions by phone. Call the title company using a known phone number before sending funds to avoid wire‑fraud scams.
- Get insurance quotes early. Flood and wind coverage affects lender approvals and timelines.
- Choose the right structure. Consider a staggered deposit to show commitment while keeping risk in check.
- Keep records. Save wire receipts, inspection reports, emails, and lender communications.
- Use experienced local pros. A strong title company, lender, and agent team reduces risk and keeps your timeline on track.
Boca Bridges and HOA communities
If you’re looking in Boca Bridges or similar HOA‑driven communities, focus on document review. Look closely at reserves, planned projects, assessments, and any rental or use restrictions that could affect your plans. Large associations can take longer to deliver documents or approvals, so build that into your timeline.
Make your offer stand out
If you’re competing for a special home, consider a larger deposit or a two‑step deposit structure that increases after inspection. Pair it with clean, realistic timelines and strong communication from your lender. Cash buyers often use higher deposits and shorter closings to strengthen their position, but financed buyers can still win with a well‑structured offer.
Next steps
If you want a clear, confident plan for your Boca Raton purchase, let’s talk through your deposit strategy, timelines, and how to protect your funds. Reach out to Jeffrey Creegan for local guidance tailored to your goals.
FAQs
How much earnest money should a Boca Raton buyer expect?
- Many buyers offer 1–3% of the price. In luxury segments, flat deposits like $25,000–$50,000 or around 1–2% are common depending on competitiveness.
When is earnest money due in Florida deals?
- Initial deposits are commonly due within 1–3 business days after the contract is effective, with details set by the contract.
Who holds escrow funds in Palm Beach County?
- Most transactions use a title or closing company or a closing attorney. Some brokers hold escrow if they maintain compliant accounts and procedures.
When is my escrow deposit refundable?
- It’s usually refundable if you cancel within your contract’s inspection, financing, appraisal, or document review periods and give proper notice on time.
What timelines should Boca Raton buyers plan for?
- Inspections: 7–15 days. Appraisal: 7–14 days after ordering. Loan approval: 30–45 days or more for jumbo. Closing: 30–60 days financed; 7–21 days cash.
What local factors can impact my escrow and closing?
- Insurance for flood and wind, HOA document turnaround and approvals, title clearing, and appraisals for unique luxury homes can extend timelines.
