Conflicting demands and settlement procedures
A deal falls apart, and the buyer and the seller both say the deposit is theirs. The broker holding the money cannot pick a winner. Florida law gives the broker a fixed path instead.
When the rule kicks in
The duties apply in two situations (Fla. Stat. 475.25(1)(d)1.; Rule 61J2-10.032(1)):
- the broker receives conflicting demands for escrowed funds, or
- the broker has a good-faith doubt about who is entitled to them, even if nobody has made a demand.
For good-faith doubt, the deadlines run from the date the doubt arises instead of the date of the last demand.
The two deadlines
| Step | Deadline |
|---|---|
| Written notice to the Florida Real Estate Commission | Within 15 business days of the last party's demand |
| Begin a settlement procedure | Within 30 business days after the last demand |
The four settlement procedures
- Escrow disbursement order (EDO). Ask the Commission to decide who is entitled to the funds.
- Arbitration, with the consent of all parties.
- Litigation. Ask a court to decide, by interpleader or otherwise.
- Mediation, with the written consent of all parties. Mediation must be successfully finished within 90 days of the last demand, or the broker must promptly use one of the other procedures.
If the broker promptly uses one of these procedures and follows the order or judgment that results, no administrative complaint may be filed against the broker for failing to account for or deliver the funds.
A party who will not answer
When one party to a failed sale will not say whether they claim the money, the broker may send that party a certified notice, return receipt requested, to their address or email address of record with DBPR. The notice says the other party has made a demand and that a response is due by the seventh business day after it is sent. No answer within seven business days counts as permission to release the funds to the other party (Rule 61J2-10.032(1)(c)).
Releasing funds without notice
The statute lets the Commission name situations where a broker may release escrow money without notifying it. Two are written into the statute itself. The broker may return the deposit to the buyer without notice when:
- a residential condominium buyer delivers written notice canceling the contract as allowed by Fla. Stat. 718.503, or
- a buyer, in good faith, fails to satisfy the terms of the financing clause in the contract.
Other notices
If a broker asks for an EDO and the parties settle or go to court before the order is issued, the broker must notify the Commission within 10 business days (Rule 61J2-10.032(2)(c)). Brokers holding deposits under a HUD contract for HUD-owned property follow that contract's terms, not these notice and settlement steps (Rule 61J2-10.032(5)).