Buying a home in Dunnellon should feel exciting, not confusing. If you have questions about where your deposit goes, who holds it, and when you can get it back, you are not alone. Earnest money and escrow are simple once you see how they work in Florida. In this guide, you will learn what to expect in Marion County, how to protect your funds, and how to avoid common pitfalls. Let’s dive in.
Earnest money vs. escrow
Earnest money is your good faith deposit that shows a seller you are serious. You deliver it soon after your offer is accepted, and it becomes part of your funds at closing.
Escrow is the neutral holding of money and documents by a third party according to the contract. In Florida, that party is often a title or closing company, though a broker can also hold funds in a trust account. Lender escrow accounts for taxes and insurance are different and happen after you close.
How deposits work in Dunnellon
Your contract controls the deposit amount, who holds it, and the delivery deadline. In Dunnellon, the deadline is commonly 2 to 5 business days from the effective date, but always follow your contract.
There is no state-required percentage. Many local buyers deposit a fixed amount like 1,000 to 5,000 dollars for modest-priced homes. In competitive situations or higher price points, deposits can be larger to stand out.
Most Marion County deals use a neutral title or closing company to hold the deposit. You will usually deliver funds by cashier’s check, certified check, or wire. Always get a written receipt and keep it with your contract paperwork.
At closing, your deposit is credited toward the purchase price and closing costs. If you cancel under a valid contingency by the deadline, you may be entitled to a refund under the contract. If you default without a valid contingency, the seller may be able to keep the deposit as liquidated damages if the contract allows.
Timeline and key contingencies
Every contract is different, but this is a common flow in Florida:
- Day 0: Offer accepted, contract becomes effective.
- Day 2 to 5 business days: Deliver earnest money to the named escrow holder.
- Days 7 to 15: Inspection period. You inspect and can request repairs or cancel if allowed.
- Days 21 to 30: Financing contingency period for loan approval if you are financing.
- Appraisal: Usually after loan application. If value is low, the contract guides next steps.
- Closing: Often 30 to 45 days from the effective date, faster for cash deals.
Contingencies that commonly affect refunds include inspection, financing, appraisal, and title or survey issues. Track each deadline in writing.
Protect your deposit: buyer tips
- Confirm the deposit deadline in your contract and calendar it.
- Use the named escrow holder and get a written receipt.
- Send notices in writing for inspections, repairs, or cancellations before deadlines.
- Verify wiring instructions by phone using a number you look up independently.
- Ask for a copy of the escrow receipt and the settlement estimate when available.
Seller essentials
- Confirm who holds the deposit and request a prompt escrow receipt.
- Know your contract’s remedies, including liquidated damages, before accepting or releasing funds.
- Do not authorize disbursement if there is a dispute without a written agreement or official direction.
Disputes and refunds in Florida
If buyer and seller disagree about the deposit, the escrow holder follows the contract. When there is no agreement, common paths include a mutual written release, a court interpleader that lets a judge decide, or for brokers, an Escrow Disbursement Order from the Florida Real Estate Commission. Title companies typically rely on written instructions or court orders to disburse disputed funds.
Even when a refund is due, processing time can vary. Wires are often faster than checks, and each escrow holder has its own cycle.
Wire fraud safety
- Treat any last-minute change to wiring instructions as suspicious.
- Call the title company using a verified number to confirm instructions before sending funds.
- Use strong email security and request dual verification for disbursements.
- Consider a cashier’s check if allowed by the escrow holder.
Local notes for Dunnellon and Marion County
You will often see title or closing companies in the Dunnellon and Ocala area holding the deposit and coordinating closing. Deposit sizes vary with price point and competition. Ask your agent for current local norms so your offer is competitive without risking more funds than needed.
Quick checklist
- Know your deposit deadline and amount.
- Deliver funds to the named escrow holder and keep the receipt.
- Track inspection, financing, appraisal, and title deadlines.
- Put all notices and agreements in writing.
- Verify wiring instructions by phone before sending money.
Your next step
If you are preparing to buy or sell in Dunnellon, having a clear plan for earnest money and escrow can keep your deal smooth and stress-free. Ready to talk strategy for your timeline, deposit, and offer strength? Reach out to Unknown Company to get expert, local guidance.
FAQs
How much earnest money should I offer in Dunnellon?
- Many buyers use a fixed amount like 1,000 to 5,000 dollars for modest-priced homes, with higher deposits in more competitive situations.
Who usually holds earnest money in Marion County, FL?
- The contract names the holder, but most local deals use a neutral title or closing company to hold funds until closing.
When do I get my deposit back if I cancel?
- If you cancel within a valid contingency period and follow the contract steps, your deposit is generally refundable.
Can a seller keep my deposit if I change my mind?
- If you default outside of valid contingencies, the seller may keep the deposit as liquidated damages if the contract includes that remedy.
What is an Escrow Disbursement Order in Florida?
- It is an administrative decision by the Florida Real Estate Commission that directs how a broker must disburse disputed escrow funds.
Is earnest money the same as a down payment?
- Not exactly; earnest money is an upfront deposit that is applied to your funds at closing, which include your down payment and closing costs.
How long does a refund take after release?
- Timing varies by escrow holder and payment method; wire refunds are often faster than checks but depend on internal processing cycles.
