Deposits held by a title company or attorney, and commingling

Third-party deposit holders

In Florida, a deposit held by a title company or attorney still requires brokerage documentation. The licensee who prepared or presented the sales contract must enter the holder's name, address, and telephone number on the contract.

Unless the holder was nominated in writing by the seller or seller's agent, the licensee's broker must request written verification of receipt within 10 business days after each deposit is due under the contract. Within 10 business days of making that request, the broker must send the seller's broker a copy of the written verification or written notice that verification was not received. Notify an unrepresented seller directly. Missing verification does not itself prove nonpayment. The written nomination exception does not remove the contract identification requirement.

Commingling and limited allowances

Commingling is improper mixing of personal or brokerage funds with money held for others. Florida allows up to $1,000 of personal or brokerage funds per sales escrow account, and up to $5,000 per property management escrow account. These are limits on the broker's money, not customer deposits. The general $5,000 ceiling does not enlarge the sales account allowance.

A sales escrow account with $800 of brokerage money is within the allowance; $1,200 exceeds it by $200. Depositing customer earnest money into the operating account is improper even with a separate ledger. Spending entrusted money on brokerage expenses is conversion, distinct from merely mixing it.

Florida allows correction of escrow errors when there is no shortage and no significant threat of economic harm to the public: 30 days from when the last reconciliation was performed or should have been performed. This qualification is not permission to borrow entrusted money.