Ever wondered how much earnest money you should offer on a Longwood home, or what happens to that deposit if your financing falls through? You are not alone. Earnest money is a small part of your offer that carries big weight, especially in Seminole County’s competitive market. In this guide, you will learn how deposits work in Florida, typical amounts for Longwood homes, the timelines that matter, and how to protect your money. Let’s dive in.

Earnest money basics in Florida

Earnest money is a buyer’s deposit that shows good faith. The amount and terms are set by the purchase contract, often the Florida Realtors/Florida Bar (FR/Bar) forms. If the sale closes, the deposit is applied to your closing costs or down payment.

The escrow agent holds the funds. In Florida, title companies or attorneys usually handle escrow and closing. Some transactions use a real estate broker’s escrow account. Your contract will name the escrow agent and state when and how the deposit must be delivered.

The contract also spells out when the money is released. It can go to closing, be returned to the buyer, or be paid to the seller if the buyer defaults and the contract allows the seller to keep it as liquidated damages.

Typical amounts in Longwood

There is no fixed amount required by law. Still, common ranges can help you plan your offer in Longwood and across Seminole County.

• Entry-level homes: often $500 to $2,000.
• Mid-priced single-family homes: a common rule of thumb is about 1% of the purchase price.
• Higher-priced or competitive scenarios: 2% to 5% is not unusual to strengthen an offer.

Here are simple examples for Longwood price points:

• $250,000 home: 1% is $2,500. In a slower situation, some buyers might offer $1,000. In a bidding war, $5,000 or more can stand out.
• $400,000 home: 1% is $4,000. Competitive buyers often offer $6,000 to $10,000.
• $700,000 home: 1% is $7,000. Multiple-offer settings sometimes see 2% to 3%.

Your ideal number depends on market conditions, your financing, and your comfort level. Cash buyers often offer more. Condos or homes with association concerns may see lower deposits. A strong deposit can improve your position, but it should match your contingency plan and timelines.

Delivery deadlines and escrow

Florida contracts typically require you to deliver the deposit to the named escrow agent within a short window after both parties sign the contract. The industry norm is within 1 to 3 business days unless you negotiate something different.

Treat this deadline as nonnegotiable. Late delivery can put you in default or weaken your position. Ask the escrow agent for a written receipt showing the amount and date received.

Your contract will also explain how funds move at the end. If you close, the escrowed deposit is credited to your cash to close. If the deal ends under a valid contingency, the deposit is often returned to you after required notices and releases are completed.

Contingencies that protect your deposit

Contingencies give you time to verify that the home, financing, and title meet your needs. If you cancel as allowed by a contingency and on time, you typically get your deposit back.

Home inspections

Most Florida contracts include an inspection period, often 7 to 15 days. During this window, you can inspect, ask for repairs, or cancel if the contract allows. If you choose to cancel, follow the notice rules in your contract and do so before the deadline.

Financing and appraisal

Financing timelines often run 21 to 30 days, depending on the lender and contract. If your loan is not approved by the stated date and you give proper notice, you can usually cancel and keep your deposit. Appraisal terms may be included in your financing or written as a separate contingency. If the appraisal falls short and the contract allows, you can cancel or renegotiate.

Title and association documents

You will receive a title commitment within a set time frame. You then have a period to object to title issues. If issues are not cured and your contract allows, you can cancel and receive your deposit back. For properties with an HOA or condo association, Florida contracts give you a document review period. If the records do not meet your needs and you act within the period, you may cancel with a refund of your deposit.

Insurance and survey

In parts of Seminole County, flood zones and insurance availability matter. If your contract includes insurance or survey contingencies and you cannot obtain acceptable coverage or a satisfactory survey, timely cancellation typically protects your deposit.

When deposits are at risk

Your deposit is most at risk when you miss a deadline or waive a contingency. If you fail to close without a valid contractual reason, the seller may be allowed to keep the deposit as liquidated damages, depending on the remedy stated in the contract. Some sellers may also pursue other remedies, including legal action, but that is less common in typical residential deals.

Two steps protect you here. Track every deadline in writing and send notices exactly as your contract requires. Keep proof of delivery for all communications.

How disputes are handled

If buyer and seller disagree about who should get the funds, the escrow agent follows the contract. Many title companies require a signed mutual release before disbursing money. If the parties do not agree, the escrow agent may deposit the funds with the court through interpleader or, for broker-held escrow, follow Florida’s dispute procedures for brokers.

Most disputes resolve through negotiation once both parties review timelines and notices. Clear records and on-time communication help avoid conflict.

Local Longwood factors to consider

• Title research in Seminole County: Use a reputable local title company for the title search and commitment. The Seminole County Clerk of Court maintains recorded deeds, liens, and judgments. Allow enough time to review the commitment and raise any objections within your contract period.
• HOAs and condo associations: Many Longwood properties are in associations. Plan to request and review association documents quickly. If the records show issues you are not comfortable with and your contract allows, you can cancel during the review period.
• Insurance and flood: Parts of Seminole County involve flood considerations. Obtain an insurance quote early and review survey needs so you can act within any insurance or survey contingency.
• Market conditions: In low-inventory or multiple-offer situations, sellers often expect more certainty. That can include a higher deposit, shorter inspection periods, or proof of funds. Be sure your deposit and contingency plan match your actual risk tolerance.
• VA and FHA buyers: Appraisal and repair standards can affect timing. Coordinate your deposit, inspection window, and loan milestones so you stay within your contingency deadlines.

Buyer checklist: protect your deposit

• Confirm the exact deposit amount and due date in the contract.
• Verify the escrow agent’s name and delivery instructions.
• Get a written escrow receipt showing the deposit and date.
• Calendar all contingency deadlines: inspection, appraisal, loan approval, title, HOA/condo docs, insurance, and survey.
• Send all notices in writing, on time, and keep copies.
• If you offer a larger deposit to be competitive, confirm in writing whether any portion is nonrefundable and under what terms.

Seller checklist: set clear expectations

• Confirm the escrow agent and delivery timeline for the buyer’s deposit.
• Review remedy language, including any liquidated damages option for buyer default.
• Clarify how inspection, financing, and appraisal contingencies operate and when they expire.
• Ensure HOA/condo documents are available quickly to keep timelines on track.
• Ask for proof of funds or lender updates that align with contract milestones.

Make a competitive offer in Seminole County

If you want to stand out in Longwood, think strategy. A deposit near the market norm, delivered fast, sends a strong signal. A clean, realistic timeline shows you can perform. If you raise your deposit to compete, tie that decision to clear contingency protections and written notice rules.

Your goal is to balance strength and safety. You can be competitive without taking on more risk than you intend. The right number is the one that fits your budget, your lender’s timeline, and the exact language of your contract.

Next steps

A focused plan beats guesswork. Confirm the contract deadlines, line up your escrow and insurance early, and match your deposit to both market norms and your comfort level. With a clear strategy, you protect your money and improve your odds of winning the home.

If you are planning a move in Longwood or greater Seminole County and want a local advocate to guide your offer strategy, connect with Pamela Porazzo for tailored advice and a smooth path to closing.

FAQs

What is earnest money in Florida real estate?

• It is a buyer’s good-faith deposit held in escrow under the contract and credited to closing costs or the down payment when the sale closes.

How much earnest money is typical in Longwood?

• Many buyers offer about 1% of the price, with higher deposits, such as 2% to 5%, used to compete on desirable homes or in multiple-offer situations.

When is earnest money due after contract acceptance?

• Florida contracts often require delivery to the named escrow agent within 1 to 3 business days unless the parties agree to a different schedule in writing.

Which contingencies protect my deposit in Seminole County?

• Inspection, financing, appraisal, title, HOA/condo review, insurance, and survey contingencies can protect your deposit when you cancel within the allowed time and send proper notice.

Can a seller keep my earnest money in Florida?

• A seller may keep the deposit only if allowed by the contract, often through a liquidated damages clause, and if the buyer defaults without a valid contingency.

What happens if both sides demand the escrowed funds?

• The escrow agent usually needs a mutual release to disburse funds and may interplead the deposit with the court or follow broker procedures until the dispute is resolved.