Florida Escrow Requirements for Brokers

Florida Statute 475 and FREC Rule 61J2 govern how real estate brokers handle escrow funds. Any broker who accepts a deposit must place those funds in a properly registered escrow account within three business days of receiving them. Commingling escrow funds with operating funds is a violation regardless of intent.

Escrow account signatories must be licensed Florida real estate professionals. The broker of record is ultimately responsible for all funds in the account. If a dispute arises, the broker cannot unilaterally release the money. Florida law provides four resolution options: mediation, arbitration, interpleader action, or a written release signed by all parties.

Monthly reconciliation is required. FREC requires brokers to reconcile their escrow ledger with the bank statement by the end of each month. The reconciliation must match to the penny. Unexplained shortages in escrow are among the most serious violations FREC investigates.