Contracts
In Florida, earnest money in a real estate transaction is technically called:
AA security deposit
BA binder deposit or escrow deposit✓ Correct
CA down payment installment
DA loan origination reserve
Explanation
Earnest money in Florida real estate is technically a binder deposit (or escrow deposit) that evidences the buyer's good faith intent to purchase. It is held in escrow by the broker or closing agent until closing.
People Also Study
Related Florida Questions
- Under FREC rules, a Florida broker who receives earnest money must deposit it in the escrow account within:Florida License Law
- In Florida, when must a broker deposit earnest money into an escrow account?Escrow & Title
- In Florida real estate, 'earnest money' (also called a good faith deposit) serves primarily to:Contracts
- In Florida, a real estate broker who receives an earnest money deposit must deposit it into an escrow account within:Escrow & Title
- A Florida real estate broker who acts as the closing agent holds earnest money in their trust account. The funds remain in escrow until:Escrow & Title
- A Florida broker receives a check for earnest money on a Friday afternoon. The three-day clock to deposit the check into escrow starts:Florida License Law
- A Florida broker receives a $5,000 earnest money deposit. The broker must deposit this money into an escrow account:Florida License Law
- A Florida buyer gives a personal check for $10,000 as earnest money. The listing broker holds the check at the buyer's request until the offer is accepted. Upon acceptance, the broker must deposit the check:Florida License Law
Key Terms to Know
Earnest Money
A deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
EscrowA neutral third-party arrangement where funds, documents, and instructions are held until all conditions of a real estate transaction are satisfied.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
Math Concepts
Study This Topic
Practice More Florida Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Florida Quiz →