In Florida, Real Estate Brokerages, attorneys, and title companies can legally hold the Escrow deposit (EMD). This EMD is typically submitted with an offer or shortly thereafter. The real estate contract should clearly state who is holding the EMD and the contact information. Most agents do not care about who is holding EMD.
The majority of big brokerages are refusing to hold Escrow (EMD) themselves. Instead, they require clients to use an affiliated title company or attorney to do the job. Practically, agents do not bother who is holding EMD. Their broker does not give them options.
If however, a fight over EMD is escalating it is important to know the law. If EMD is held by a licensed Florida Real Estate Brokerage, the FREC (FLORIDA REAL ESTATE COMMISSION) has put a nice vehicle into law. §475.25 F.S. gives licensed real estate brokers a simple and effective administrative procedure when it comes to conflicting demands regarding EMD. This procedure is called Escrow disbursement order (EDO). Arguments are sent to FREC and FREC decides. This procedure is without any fees to any of the parties. So any disputes can be resolved fairly and quickly without any courts or litigation.
Big Franchises ONLY limit their own liability, not yours, when asking to have attorney or title company hold EMD
But FREC (FLORIDA REAL ESTATE COMMISSION) only has jurisdiction about licensed real estate brokers. Not about title companies and not about attornies. So if your EMD is held with one of these, you are out of luck. FREC can not do anything for you.
These Escrow agents will typically only release Escrow if a written agreement is found between all parties to whom EMD shall be released. You can imagine, this to be difficult when you have conflicting demands between the parties.
For any client, if your broker refuses to hold EMD, he / she is refusing to do part of their work and act in your best interest.
Sea to Sky Realty is holding Escrow for our clients. Why? Because we feel it’s in the best interest of our client.
Our suggestions: One of the involved Real Estate Brokerages shall hold EMD. Period!
Don’t let anybody fool you. Real Estate Brokerages refusing to hold Escrow for their clients are obviously not providing the most beneficial service to their clients. They are putting their own interest ahead of yours.
Sea to Sky Realty
The Florida Real Estate Company with the GERMAN Twist!
Axel and Bea Weiss
Bradenton, Florida 34205
(941) 866 1666