Putting money down before you even own the home can feel risky. In Jacksonville, that upfront deposit is called earnest money, and it plays a big role in getting your offer accepted and keeping your contract on track. If you understand how it works, you can protect your deposit and move toward closing with confidence. In this guide, you will learn what earnest money is, how much to offer, when it is refundable, and how to avoid common pitfalls in Duval County. Let’s dive in.
What is earnest money
Earnest money, sometimes called a good‑faith deposit, is cash you put up with your offer to show the seller you are serious about buying. It is held in escrow and later credited to your down payment or closing costs at closing. It gives the seller short-term assurance while the contract is active and creates a fund that can be used if either party breaks the agreement. The exact rules for handling the deposit are spelled out in the contract.
How much to offer in Jacksonville
There is no single correct amount. In many residential sales, deposits range from a few hundred dollars to several thousand dollars, often about 1 to 3 percent of the purchase price. When the market is very competitive, some buyers choose to offer more to strengthen their offer. Jacksonville’s prices can be lower than some larger Florida metros, so deposits may look smaller in dollars while still being similar as a percentage.
Your strategy should match local conditions, property type, and your comfort with risk. If you want to be competitive without overexposing your funds, talk with your agent about current norms and how quickly homes like yours are selling. Your contract will also control when the money is due and who holds it.
How the money moves from offer to closing
When you pay it
Most Florida contracts require you to deliver your earnest money with the offer or within a short period after acceptance, often a few business days. Your contract will list the exact deadline. You can typically pay by cashier’s check or wire transfer to the named escrow holder. Always follow the written delivery instructions in the contract.
Who holds it
In Jacksonville, the escrow is most often held by a title company or closing agent. Sometimes the buyer’s or seller’s brokerage holds it in a broker escrow account, or an attorney/title agent serves as escrow holder. The contract identifies the escrow agent and how to deliver the funds. Confirm the agent’s contact details and delivery method before you send any money.
What happens at closing
If the transaction closes, the escrowed deposit is credited to your cash to close. It can offset part of your down payment or your closing costs, depending on how your lender structures the final numbers. The settlement statement will show exactly how your deposit is applied.
When your deposit is refundable
Florida contracts include protections that can make your deposit refundable if you act within the deadlines. Common examples include:
- Inspection period. If you cancel within the inspection window as allowed by your contract, your deposit is usually returned.
- Financing contingency. If you cannot obtain your loan as specified and give timely notice, you are typically protected.
- Appraisal contingency. If the property does not appraise and you cancel within the terms, you may get your deposit back.
- Title issues. Unresolved title defects can justify canceling with a refund.
- Other agreed contingencies. HOA document review, survey, or insurance approvals may be written into your contract.
Refunds depend on strict compliance with the contract’s notice rules. Give written notice on time and keep proof of delivery. Verbal statements are rarely enough.
When your deposit may be at risk
If you breach the contract without a contingency-based reason, the seller may have the right to keep your deposit. Missing a critical deadline can also put your funds at risk. Examples include failing to deliver inspection notices within the inspection period, not applying for financing as required, or not closing by the agreed date without an allowed extension. Your contract will define what counts as a breach and what remedies the seller has.
If the seller backs out without a valid reason under the contract, you may be entitled to your deposit back and potentially other remedies. Those remedies depend on the contract language and Florida law. For disputes or complex situations, consider speaking with a real estate attorney.
Typical timelines in Duval County
Most residential closings in many Florida markets take about 30 to 45 days after contract acceptance. Your contract will likely include short windows for inspections, financing steps, title review, and appraisal, often 3 to 15 days for certain items. Put every key date on your calendar and ask for extensions in writing if you need them. The escrow holder cannot release funds without the required written authorization, a court order, or other contract-based resolution.
Local factors that can affect your deposit
Flood zones and hurricane season
Parts of Jacksonville include coastal and inland flood-risk areas. You may need time to confirm flood insurance, review FEMA or elevation certificates, and understand potential costs. Build enough time into your contingency periods to complete this research, especially during hurricane season when timelines can tighten.
Insurance availability and premiums
Insurance underwriting can affect your financing and timing. If your insurer needs additional inspections or repairs before issuing a policy, you might need a longer insurance or financing contingency. Plan for this early so you do not put your deposit at risk by missing a deadline.
Condo or HOA document review
If you are buying in a condo or HOA, ask for a document review period. If the documents reveal a material issue and your contract allows you to cancel, timely written notice can protect your deposit. Clarify up front whether the deposit remains refundable during that review window.
Escrow disputes and resolutions in Florida
If both parties agree in writing, the escrow agent can release funds based on that mutual release. If you disagree, the escrow holder keeps the funds until the dispute is resolved through the process in the contract. Common paths include mediation or arbitration, an interpleader action in court, or a formal disbursement process under the contract. Keep your communications documented and follow the steps in your agreement.
Buyer checklist to protect your deposit
- Confirm the escrow agent named in the contract and get delivery instructions from a verified source.
- Verify wiring details by calling a known phone number for the title company or visiting in person. Do not rely on email alone.
- Deliver the deposit on time and get a receipt or confirmation of funds received.
- Calendar every deadline: inspection end date, appraisal, financing, title review, and closing.
- Send notices in writing before deadlines and keep proof of delivery.
- Request extensions in writing if you need more time.
- Review HOA and condo documents within the allowed period.
- Keep your lender updated and respond quickly to underwriting requests so your financing contingency stays on track.
Seller tips to evaluate deposits
- Look at size relative to price. A well-sized deposit can reflect buyer commitment.
- Check timing and terms. Early delivery and clear escrow instructions reduce uncertainty.
- Confirm the escrow agent. Reputable title companies and broker escrow accounts offer proper accounting and safeguards.
- Review contingency windows. Shorter periods can reduce the time your home is off the market.
- Understand dispute steps in your contract. Know how a mutual release, mediation, or interpleader might work if a deal falls apart.
Avoid wire fraud
Wire fraud is a real risk. Before sending any money, confirm wiring instructions with the title company using a trusted phone number or in person. Be cautious of last-minute email changes to wiring details. Slow down, verify, and only send funds after you have confirmed instructions with a known contact.
Final thoughts
Earnest money is a powerful tool to strengthen your offer and keep your purchase on track, as long as you protect it with the right timelines, notices, and safeguards. In Jacksonville, local factors like flood risk, insurance approvals, and association documents can influence how much you offer and how long your contingencies should be. With a clear plan and careful documentation, you can balance competitiveness with protection for your deposit.
If you want local, step-by-step guidance from offer to closing, reach out to Leslie Smith for a free, no-pressure consultation. With decades of local experience, you will get practical advice tailored to your goals and the current Duval County market.
FAQs
How much earnest money should I offer in Jacksonville?
- Typical deposits often range from a few hundred dollars to several thousand dollars, commonly about 1 to 3 percent of price, adjusted for competition and your risk comfort.
When is my earnest money refundable in Florida?
- It is generally refundable if you cancel under a valid contingency, such as inspection, financing, appraisal, or title, and you give written notice by the deadlines in your contract.
What happens to earnest money if the seller cancels in Jacksonville?
- If the seller cancels without a valid contract reason, you may be entitled to your deposit back and possibly other remedies, depending on your contract and Florida law.
Who holds the earnest money in Jacksonville?
- A title company or closing agent most commonly holds escrow; sometimes a broker’s escrow account or an attorney/title agent serves as the escrow holder per the contract.
How do I protect myself from wire fraud when sending earnest money?
- Verify wiring instructions by calling a known phone number for the title company or confirming in person, and never rely on email changes to wiring details without independent verification.
