Putting money on the line before you even own the home can feel intimidating. If you are buying in Jacksonville, your earnest money shows a seller you are serious, and it also deserves careful protection. In this guide, you will learn what earnest money is, how much buyers in Duval County typically put down, the timelines and contingencies that safeguard your deposit, and how disputes are handled. Let’s dive in.
Earnest money basics
Earnest money is a good‑faith deposit that you place into escrow after your offer is accepted. It is credited to you at closing and signals commitment to the seller. In Florida, the rules that govern how deposits are handled come from state law and the signed contract between buyer and seller.
Most resale transactions use the Florida Realtors and Florida Bar Residential Contract for Sale and Purchase. That standard contract sets the deposit amount, the escrow holder, deadlines, and contingencies that protect your funds. If you want to see how these contracts work at a high level, review consumer resources from Florida Realtors.
Florida does not require an attorney to close. Title companies, licensed brokers, or real estate attorneys can hold escrow and manage closing tasks. You should always know exactly who holds your deposit and how releases are handled.
Typical amounts in Jacksonville
There is no fixed number for earnest money. In many markets, including Jacksonville, deposits often range from about 1 percent to 3 percent of the purchase price. In competitive situations, buyers sometimes offer more to strengthen an offer.
Local norms change with market conditions. When inventory is tight and homes sell quickly, deposits may trend higher or timelines may be shorter. For a current read on market intensity and offer patterns in Northeast Florida, ask your agent to reference recent data from Stellar MLS.
What you offer should reflect your comfort level, your financing strength, and the price point. The deposit is negotiable, so use recent local examples to calibrate your number.
Who holds your deposit
Your contract will name the escrow agent and provide contact details. In Jacksonville, funds are commonly held by:
- A title company or settlement agent
- A licensed real estate broker’s escrow account
- A real estate attorney’s trust account
Whoever holds the money must follow Florida escrow rules and written instructions in the contract. To understand how Florida licenses and oversees escrow holders, review the Division of Real Estate at the Florida Department of Business and Professional Regulation.
When and how to pay
The contract sets your deposit deadline. Many Florida contracts require delivery within a few business days after the effective date, often three business days, but your offer controls the exact timing. Pay close attention to whether your deadline uses business days or calendar days. The contract defines these terms, and they matter for timely delivery.
Common payment methods include cashier’s check, wire transfer, or another electronic method accepted by the escrow holder. Personal checks may be allowed but can delay acceptance while the check clears. Always request a receipt from the escrow agent when funds are delivered.
Protect against wire fraud
Real estate wire fraud is a real risk. Criminals can impersonate your agent or title company and send fake wiring instructions. To protect yourself:
- Verify wiring instructions by calling the escrow holder using a trusted phone number, not one from an email.
- Confirm account details again just before sending funds.
- If anything changes at the last minute, pause and re‑verify.
For step‑by‑step guidance, read the FTC’s advice on avoiding mortgage closing scams from the Federal Trade Commission and the FBI’s overview of Business Email Compromise.
Contract clauses that affect your deposit
Your deposit is safest when you understand your contingencies and timelines. Key protections include:
Inspection period
Most buyers have a defined inspection window to evaluate the property. If you cancel within that window following contract rules, your earnest money is typically refundable. Keep all notices in writing and on time.
Financing and appraisal
A financing contingency protects you if your lender does not approve the loan by the stated deadline. Appraisal protections may be included as part of financing or as a separate clause. If the appraisal comes in below the price and the contract includes an appraisal out, you may be able to renegotiate or cancel for a refund if you act within the notice period.
Title, HOA, and survey
Title review can uncover liens or defects. HOA documents can reveal restrictions or fees that do not fit your plans. A survey might show encroachments or boundary issues. If your contract gives you a right to object and the seller cannot cure, you can usually cancel and receive your deposit back, subject to contract timelines and notices.
Liquidated damages language
Some contracts include an optional liquidated damages clause. If you default, this clause may allow the seller to keep your deposit as the agreed remedy, often with a cap. Understand this term before you sign because it affects how your deposit is treated if things go wrong.
How your deposit can be at risk
Your deposit can be at risk if you miss a deadline, fail to provide required notices, or default on the contract without a valid contingency. If you close as agreed, your earnest money is simply credited to your purchase price or closing costs.
If you cancel properly under a contingency, the escrow agent will release funds based on the contract and written instructions. When the buyer and seller disagree about who should receive the money, the escrow agent usually cannot release funds until both parties agree in writing or a court or arbitration decision directs the release.
Common resolution paths include a mutual release, mediation or arbitration if the contract requires it, or an interpleader action where a court decides who is entitled to the deposit. Negotiation is often the fastest and least costly path.
Smart steps to protect your deposit
- Confirm in writing who holds your earnest money and get contact information.
- Calendar every deadline, including deposit delivery, inspection, loan approval, appraisal, title review, and closing.
- Use a secure payment method the escrow agent accepts and always verify wiring instructions by phone.
- Provide all required notices in writing, on time, and to the correct parties as the contract requires.
- Keep proof of everything, including the escrow receipt, inspection reports, lender communications, and emailed notices.
- If a deadline looks tight, ask for an extension in writing before the deadline expires.
- If a dispute arises, speak with your agent and consider legal advice before taking action.
Jacksonville buyer tips
- Discuss current offer trends with your agent. In a hotter submarket, a larger deposit or shorter timelines can help you compete, but weigh the risk carefully.
- Ask your agent to share recent local data from Stellar MLS so your deposit aligns with neighborhood norms.
- Clarify escrow logistics early, including the exact deposit deadline and whether the contract uses business or calendar days.
- For questions about how public records and recording work after closing, the Duval County Clerk of Courts is a helpful local reference.
- If you want a plain‑English overview of mortgage steps and costs, the Consumer Financial Protection Bureau’s Owning a Home guide is a solid resource.
What happens at closing
If all contract obligations are met, your earnest money is applied to your down payment or closing costs on the final settlement statement. The title company or closing agent will follow your signed instructions and the contract to allocate funds. You will also receive final documents and, after recording, ownership transfers.
Escrow holders and brokers must handle trust funds according to Florida rules and written instructions. For licensing and escrow oversight details, visit the Florida DBPR Division of Real Estate. For general contract background and consumer education, see Florida Realtors.
Your next step
If you are preparing an offer in Jacksonville or relocating to Northeast Florida, having a clear deposit strategy can strengthen your position and protect your money. A well‑structured contract, clean timelines, and careful escrow steps lower stress and help you focus on choosing the right home.
If you want a calm, concierge path from offer to closing, connect with Meredith Rowe for local guidance, step‑by‑step timing, and a deposit plan that fits your goals.
FAQs
How much earnest money do Jacksonville buyers typically put down?
- Many buyers offer about 1 to 3 percent of the price, with higher deposits considered in competitive situations.
Who usually holds escrow for Jacksonville purchases?
- Title companies commonly hold funds, though licensed brokers or real estate attorneys may serve as escrow agents based on the contract.
When is my earnest money due after offer acceptance in Florida?
- Deadlines are set by your contract, often within a few business days after the effective date, so confirm the exact timing and whether days are business or calendar.
Can I get my deposit back if I cancel after inspections in Jacksonville?
- If you cancel within the inspection window and follow the contract’s notice rules, your deposit is typically refundable.
What happens if the appraisal is low in Florida?
- If your contract includes appraisal protection, you may renegotiate or cancel for a refund when you give timely notice under the clause.
How do I avoid wire fraud when sending my deposit?
- Call the escrow holder at a trusted phone number to verify wiring instructions before sending any funds and re‑confirm details just before transfer.
