Making an offer on a Miami home or condo and wondering how much earnest money you should put down, and what happens if something goes wrong? You are not alone. Your deposit is a powerful signal to the seller, but it is also real money you want to protect. In this guide, you will learn how earnest money works in Miami, typical amounts, key timelines, and practical ways to stay competitive without putting your deposit at unnecessary risk. Let’s dive in.
What earnest money means in Florida
Earnest money is a good faith deposit you place after your offer is accepted to show you intend to buy. If the deal closes, the deposit is applied to your purchase. In Florida, your contract controls the amount, who holds the funds, deadlines, and when the money can be released or refunded.
Most Miami buyers use the Florida Realtors and Florida Bar contract forms. These forms outline the escrow holder, how and when to deliver funds, and which contingencies protect your deposit. If there is a disagreement about who should receive the money, the escrow holder typically needs written authorization from both parties or a legal resolution before any funds are released.
Typical deposit amounts in Miami
There is no fixed rule, but local practice offers clear ranges you can use as a starting point:
- For many entry level and typical homes or condos: about 1 to 3 percent of the purchase price, often around 5,000 to 15,000 dollars.
- In competitive situations: larger deposits are common, about 2 to 5 percent to help your offer stand out.
- In luxury sales: deposits can be 5 percent or higher, sometimes flat amounts like 50,000 or 100,000 dollars or more.
Condo transactions follow similar ranges, but you may see buyers adjust deposits based on association reviews, reserves, and insurance considerations. Treat these numbers as market norms, not requirements. Your agent will help you gauge what local sellers expect for your specific price point and neighborhood.
How escrow works in Miami
In Miami area purchases, the escrow holder is usually a title or closing company that keeps your deposit in a dedicated trust account. Less commonly, an attorney, a broker escrow account, or a builder’s trust account will hold the funds.
- Delivery timing: Many contracts require you to deliver your deposit within 24 to 72 hours after the contract is fully signed. Faster delivery can make your offer feel stronger to the seller.
- Payment method: Wire transfers are standard for larger deposits. Certified checks or personal checks may be allowed, but wires are preferred for speed and tracking.
- Account handling: Funds are held in a trust account. Most deposits do not earn interest unless your agreement specifically says otherwise.
Always confirm the escrow holder’s name, the account type, and the exact instructions written in your contract.
Contingencies that protect your deposit
Your contract’s contingencies create clear windows when you can cancel and receive a refund of your deposit. Missing a deadline can put your money at risk. Common Miami timelines include the following.
| Contingency | Typical Miami window |
|---|---|
| Inspection and due diligence | 7 to 15 days, with 10 days common |
| Financing approval | 21 to 30 days, depending on lender and loan type |
| Appraisal (often tied to financing) | Within the financing window |
| Condo or HOA document review | Commonly 10 to 15 days, sometimes longer for complex reviews |
| Survey review (if applicable) | Often 10 to 15 days |
If you properly terminate in writing within a valid contingency period, you typically receive a full refund. If you miss a deadline or do not follow the notice procedure, you may lose the right to cancel based on that contingency.
When your deposit is refundable
You usually keep the deposit refundable when:
- You cancel in writing during a valid contingency window, such as inspections or financing.
- The seller cannot meet a contract requirement, such as resolving a title defect within the allowed cure period, and the contract lets you cancel.
- You and the seller agree in writing to a refund.
When your deposit is at risk
Your deposit may be claimed by the seller if:
- You fail to close without a valid contingency or proper written release.
- You miss a key deadline, such as inspection objections or financing denial notice.
- You breach other contract obligations, like not providing required loan documentation.
Many Florida contracts include a liquidated damages option that lets the seller keep the deposit if the buyer defaults. That means your deposit can be the main economic consequence if you walk away without a contractual basis.
Miami condo specifics you should know
Condo purchases in Miami often require deeper due diligence. Post Surfside, buyers and lenders tend to examine structural reports, reserves, and insurance more closely. You may need a longer and more detailed condo document contingency to review budgets, special assessments, and building reports.
If your contract gives you the right to cancel due to association rules, document concerns, or a board denial, follow the timelines precisely and provide written notice the way the contract requires. Done properly, that usually protects your deposit.
Strong offers without risking your deposit
A well drafted offer can help you win in Miami while keeping your funds protected. Consider these steps:
- Align the deposit with the market: Use a deposit that fits local expectations at your price point. Larger deposits can add strength, but only go bigger if you are comfortable with the risk.
- Set realistic timelines: Use inspection, financing, and condo review periods that your inspector, lender, and title company can meet. In Miami, 10 days for inspection and 21 to 30 days for financing are common.
- Name the escrow holder and timing: State the company and exactly when you will deliver funds, such as within 48 hours of acceptance.
- Keep proof of payment: Use a traceable method like a wire, and retain the confirmation.
- Protect condo buyers with clear language: Include a thorough condo document and approval contingency with enough time to review reserves, insurance, and any engineering reports your lender requests.
Wire safety and dispute basics
Wire transfer is standard in Miami for larger deposits, but you should verify instructions by calling the title company at a known number. Do not rely only on email. This reduces wire fraud risk.
If a dispute arises over your deposit, the escrow holder usually needs a signed release by both parties or a legal directive before funds are released. Contracts may require mediation or arbitration. Title companies can also hold funds until a court decides. If you reach an impasse, ask your agent about next steps and whether speaking with a real estate attorney makes sense for your situation.
Timing tips that help you win
- Deliver fast: Submitting your deposit within 24 to 48 hours can signal strength.
- Show financing strength: A solid preapproval can reduce perceived risk for the seller and sometimes allows you to stay within the lower end of typical deposit ranges.
- Respond quickly during due diligence: Line up inspectors early and keep an eye on condo documents and insurance items that can slow a loan approval in Miami-Dade.
Special Miami market factors to watch
Insurance and association documentation can affect loan approvals and closing timelines in Miami-Dade. Lenders may ask for more condo documents or recent reports, which can extend the financing process. Older or high rise buildings can require deeper review of reserves and engineering studies. Build in adequate time for these steps and avoid waiving protections you may need.
Your next step
Earnest money is a small line item on paper, but it has big implications for your Miami purchase. Set a deposit strategy that matches the property type, competition level, and your financing strength, then write clean timelines you can meet. With the right plan, you can submit a compelling offer and keep your deposit protected.
If you are weighing deposit size, condo timelines, or escrow details for a Miami area offer, connect with the hands-on team at Real Estate Connect. We will help you craft a smart, local strategy that aligns with your goals and comfort level.
FAQs
How much earnest money do Miami sellers expect?
- Many offers use about 1 to 3 percent of the price, with 2 to 5 percent common in competitive situations and higher amounts in luxury sales.
Who usually holds the earnest money in Miami-Dade?
- A title or closing company typically holds your deposit in a trust account, as named in the contract.
How fast do I need to deliver my deposit after acceptance?
- Contracts often require delivery within 24 to 72 hours. Faster delivery can strengthen your offer.
When can I get my deposit back in Miami?
- If you cancel in writing within a valid contingency period, such as inspections or financing, you typically receive a refund per the contract.
What if the condo board denies my application?
- If your contract includes an association approval contingency and you follow notice requirements and timelines, your deposit is usually refundable.
Is wiring my deposit safe?
- Yes if you verify wire instructions directly with the title company by phone and follow their security steps to avoid fraud.
What happens if the seller backs out after accepting my offer?
- If the seller breaches, you can typically recover your deposit and may have other contract remedies. Notify your agent in writing right away.
