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A sales associate must deliver a deposit to the employing broker by the end of the next business day. The broker must place it in escrow no later than the end of the third business day after the brokerage receives it. When the parties make conflicting demands, the broker notifies FREC in writing within 15 business days and starts a settlement procedure within 30 business days.
Escrow questions are mostly about counting days correctly and knowing who is responsible for each step. Read every question for who received the money and when. These are original practice questions, not questions from a state exam. For the exam format, see Florida real estate exams: certification and preparation.
How fast must a deposit be handled?
| Who | Deadline |
|---|---|
| Sales associate who receives a deposit | Deliver it to the employing broker no later than the end of the next business day |
| Broker | Place it in escrow no later than the end of the third business day after receipt |
Saturdays, Sundays, and legal holidays are not business days. The detail that catches students: receipt by the sales associate counts as receipt by the broker. The broker’s three-business-day clock starts when the sales associate takes the check, not when the check reaches the broker’s desk.
A sales associate never holds escrow money in their own name. The deposit goes to the employing broker.
Where escrow money goes, and how much of the broker’s own money can be there.
A broker places escrow deposits in an insured escrow or trust account at a qualifying depository, such as a bank, credit union, or savings association. The broker must be a signatory on every escrow account.
A sales escrow account may hold up to $1,000 of the broker’s own funds. A property management escrow account may hold up to $5,000.
| Account | Broker’s own funds allowed |
|---|---|
| Sales escrow account | Up to $1,000 |
| Property management escrow account | Up to $5,000 |
Personal or brokerage funds in any escrow account may not go beyond these limits.
Once a month, the broker must prepare a written reconciliation that compares the total trust liability with the reconciled bank balance, then review, sign, and date it. If the numbers do not agree, the reconciliation must explain the difference and the corrective action taken.
What if the buyer and seller both demand the deposit?
When a broker receives conflicting demands for escrowed funds, or has a good-faith doubt about who is entitled to them, two deadlines apply:
- 1Notify FREC in writing within 15 business dayscounted from the last party’s demand, or from when the good-faith doubt arose.
- 2Start a settlement procedure within 30 business dayscounted from the same point.
The broker chooses one of four settlement procedures:
- Escrow disbursement order: ask FREC to decide who is entitled to the funds.
- Arbitration: with the consent of all parties.
- Litigation: ask a court to decide, for example through interpleader.
- Mediation: with the written consent of all parties. Mediation must be completed within 90 days after the last demand, or the broker must promptly use one of the other procedures.
The broker keeps the money in escrow until the procedure resolves who receives it.
Try these practice questions.
1. A sales associate receives an earnest money check on Friday afternoon. Monday is a business day. By when must the associate deliver it to the broker?
By the end of Monday. Saturday and Sunday are not business days, so the next business day after Friday is Monday.
2. A sales associate receives a deposit on Monday and delivers it to the broker on Tuesday. When must the broker place it in escrow?
By the end of Thursday. Receipt by the sales associate counts as receipt by the broker, so the three business days run from Monday: Tuesday, Wednesday, Thursday.
3. How much of the broker’s own money may be kept in a sales escrow account?
Up to $1,000. The $5,000 limit applies to a property management escrow account.
4. A buyer and seller each send the broker a written demand for the deposit. What must the broker do?
Notify FREC in writing within 15 business days of that last demand, and start one of the four settlement procedures within 30 business days. The broker does not choose a winner and release the money.
5. Which settlement procedure requires the written consent of all parties and must be completed within 90 days of the last demand?
Mediation. If it is not completed in time, the broker must promptly use another procedure.
6. How often must a broker reconcile escrow accounts, and who signs the reconciliation?
Monthly, and the broker reviews, signs, and dates it.
Want more? Work through the real estate math examples and the exam study plan.
Official references
- Florida real estate license law and FREC rules (DBPR PDF)
- DBPR sales associate candidate booklet (PDF)
Daniel Larson Training · Instructor: Daniel Larson (#ZH1003217) · Official sources checked November 13, 2026
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