Earnest Money in Miami: How Much Sellers Should Require — And What Happens If the Buyer Walks
How much earnest money should a Miami home seller require?
In Miami's luxury market, sellers typically require 3–10% of the purchase price as an earnest money deposit — significantly higher than the 1–3% national average. Florida law sets no minimum, but the deposit amount signals buyer commitment and determines your financial exposure if the deal falls apart. Under Florida's AS-IS contract, a buyer who cancels during the inspection period receives their full deposit back. If they walk after that window without a valid contractual reason, you may be entitled to keep it as liquidated damages.
By Lynley Ciorobea | June 23, 2026
One of the first negotiating decisions you'll make after accepting an offer on your Miami home is one most sellers haven't thought much about: how much earnest money to require.
In most of the country, a 1–2% deposit is standard. In Miami's luxury market — where a home at $2.5M has a buyer wiring $125,000 to an escrow account within three business days of going under contract — the norms are different, and the stakes are higher. Getting this right isn't just about protecting yourself financially. It's about reading buyer commitment before you've taken your home off the market.
Here's what you need to know about earnest money as a seller in Miami.
What Earnest Money Is (and What It Isn't)
Earnest money is a good-faith deposit the buyer pays when their offer is accepted. It's held in a neutral escrow account — typically by a title company or real estate attorney — until the transaction either closes or falls apart. At closing, the deposit gets credited toward the buyer's purchase price or costs.
What earnest money is not: it is not your money the moment it lands in escrow. The conditions under which you can actually keep it are specific, and if you go into a deal without understanding them, you could be blindsided when the deposit goes back to the buyer after a cancellation.
How much to require in Miami
There's no law in Florida that sets a minimum. The amount is negotiated between the parties and written into the contract. Nationally, 1–3% is typical. In Miami's luxury and semi-luxury market, sellers routinely require more:
Under $1M: 3–5% deposits are standard and expected
$1M–$3M: 5–10% is common — many Coral Gables and Pinecrest sellers ask for at least 5%
$3M and above: 5–10%, sometimes structured in two phases (more on that below)
To put those percentages in real terms: on a $2M Pinecrest home, a 5% deposit is $100,000 in escrow. On a $5M waterfront property in Cocoplum, a 10% deposit is $500,000. These aren't abstract numbers — they're real dollars that signal whether your buyer is genuinely in position to close, or just keeping their options open.
A serious buyer with the financial capacity to complete a transaction won't balk at a meaningful deposit. A buyer who pushes hard to keep it at 1% — especially on a well-priced home — may be telling you something important before you've removed your listing from the market.
Where the deposit goes and when it must arrive
The standard FAR/BAR AS-IS contract — the dominant contract form in Miami residential transactions — requires the buyer to deliver the initial deposit to the escrow agent within three business days of contract execution. Your agent and the buyer's agent don't hold the money; it goes to a neutral third party (title company or attorney).
As the seller, you have no access to those funds until the transaction closes or a dispute is resolved. The deposit sits beyond either party's unilateral control until something definitively happens.
When the Buyer Gets Their Deposit Back
This is the part that surprises most Miami sellers, and it's worth spending real time on.
Under Florida's AS-IS contract, the buyer has an inspection period — typically 10 to 15 days from contract execution, though it's negotiated — during which they can cancel for any reason and receive their deposit back in full. No justification required. They don't have to point to a specific defect or show a failed inspection report. If they decide during that window that they don't want the house, they submit a cancellation notice and the deposit is returned.
This comes as a shock to some sellers. You've accepted the offer. The buyer has sent an inspector through your home. You've started making plans around a closing date. And then, with three days left in the inspection period, they cancel — and the deposit goes back to them.
For a complete walkthrough of what sellers can and cannot do during this period, Florida's Inspection Period: What Miami Home Sellers Need to Know covers the mechanics in detail.
Beyond the inspection period, buyers also get their deposit returned if a contingency they hold isn't satisfied. If there's a financing contingency and the loan falls through after the inspection period ends, the buyer is typically entitled to their deposit back. Same with an appraisal contingency — if the home doesn't appraise and the buyer elects to cancel rather than renegotiate, the deposit goes back to them.
Understanding these protections helps you structure better terms from the start. The more contingencies a buyer carries — and the longer the windows — the less the earnest money actually protects you.
When You Get to Keep It
Here's where the deposit actually becomes yours.
If the buyer's inspection period has passed, they have no remaining active contingencies, and they walk away from the deal without a valid contractual reason — you may be entitled to keep the earnest money as liquidated damages.
The key phrase is "without a valid contractual reason." If the buyer manufactures a reason that fits under a remaining contingency, or claims the seller failed to perform some obligation under the contract, the picture gets more complicated. The parties are in dispute, and the escrow process begins.
What a clean forfeiture looks like: the inspection period is over, financing is in place, there are no outstanding contingencies, and the buyer stops responding or sends notice that they're backing out. You submit a formal demand for release of the deposit, the escrow holder agrees, and the buyer doesn't contest it within the required window — and the deposit is yours.
That scenario is cleaner than it sounds. In practice, buyers who want out often find reasons to contest, because they know the burden of proving forfeiture can take months and money.
The earnest money dispute — the part sellers don't expect
Florida law requires the escrow agent to follow specific procedures when a dispute arises. They cannot simply hand the money to whoever asks first.
When a buyer and seller disagree about who's entitled to the deposit, the escrow agent typically sends written notice to both parties, waits a defined period for the dispute to resolve, and — if it doesn't — either deposits the funds with the court through an interpleader action or submits the matter to mediation or arbitration.
This process takes time. Weeks, sometimes months. And pursuing the deposit can involve attorney's fees. For deposits of $150,000 or more — which is not unusual on a $2M–$3M Miami home — it's generally worth pursuing. For smaller amounts on a lower-priced property, some sellers make the practical decision that the cost and friction aren't worth it.
This is one of the reasons working with a real estate attorney in Florida is worth the cost. Understanding what your contractual rights actually are — and having someone in your corner when a dispute arises — can make a real difference in what you recover. For context on what happens after you accept an offer in Florida from contract ratification through closing, that post covers each stage of the process including how the escrow timeline unfolds.
Structuring the deposit strategically
One approach that protects sellers well in Miami's luxury market is the two-phase deposit structure. Rather than requiring the full deposit upfront, the contract calls for a smaller initial deposit at execution — and an additional, larger deposit delivered when the inspection period ends. That second deposit typically converts to non-refundable at that point, absent a remaining contingency like financing or appraisal.
A practical example: on a $3M Coconut Grove home, $75,000 delivered within three days of contract, with an additional $225,000 due at the end of the inspection period. The buyer's ability to walk penalty-free expires when that second deposit clears escrow. That structure gives you substantially more protection than a single small upfront deposit with a long inspection window.
Your agent should know how to negotiate this, and buyers' agents in this market expect it as a reasonable ask from sellers of well-priced homes. If the buyer pushes back hard on a meaningful second deposit, pay attention to what that signals.
Deposit amount and structure are also negotiable in a counteroffer. If a buyer offers 2% with no second deposit, you can counter with 5% and a two-phase structure. Many sellers don't realize they can push on this at the offer stage rather than waiting until they're already in a difficult negotiation.
Every deal is different, and the right deposit terms depend on your specific home, the buyer's profile, and current conditions in your neighborhood. If you're preparing to list in Coral Gables, Pinecrest, South Miami, Palmetto Bay, or Coconut Grove and want to think through how to structure your offer terms before you're in the middle of a negotiation, I'm happy to walk through it with you.
Frequently Asked Questions
Does Florida law require earnest money in a real estate transaction?
No. Florida has no minimum earnest money requirement. The deposit amount is negotiated between buyer and seller and written into the contract. However, the amount of the deposit signals buyer commitment, and a very low deposit creates less financial incentive for the buyer to close. Most experienced Miami sellers require significantly more than the 1–3% national average.
What happens to the earnest money if the buyer cancels during the inspection period?
Under Florida's AS-IS contract, a buyer who cancels for any reason during the inspection period is entitled to a full refund of their earnest money deposit. The seller has no grounds to keep the deposit in this scenario, regardless of what was — or wasn't — found during the inspection.
How quickly must a buyer deliver earnest money in Florida?
The standard FAR/BAR AS-IS contract requires the initial deposit to be delivered to the escrow agent within three business days of contract execution. If the buyer fails to deliver within that window, the seller may have grounds to declare the buyer in default.
Can I require a higher earnest money deposit than the buyer offered?
Yes. Deposit amount is fully negotiable. As the seller, you can counter with a higher deposit, a different structure, or a two-phase deposit arrangement. In Miami's luxury market, it's common and appropriate for sellers to require deposits significantly above the 1–3% national average — and buyers working with experienced agents expect it.
What happens if there's a dispute over who gets the earnest money?
Florida requires the escrow agent to follow a formal dispute resolution process: written notice to both parties, a waiting period, and — if unresolved — either a court interpleader action or mediation/arbitration. Disputes can take weeks or months to resolve, and the process often involves legal fees. Sellers with large deposits at stake typically benefit from working with a real estate attorney who can file a formal demand for release and represent their position if the matter escalates.
Earnest money is one of the details that feels simple until a deal starts to go sideways — and then it becomes one of the most important terms in your contract. If you're thinking about listing in southern Miami and want to make sure you're protected from the start, reach out anytime.
About Lynley Ciorobea
Lynley Ciorobea is a Miami-born real estate professional known for helping homeowners successfully prepare, position, and sell their homes across Coral Gables, South Miami, Pinecrest, Palmetto Bay, and the surrounding southern Miami neighborhoods. Since 2007, she has built her business around thoughtful strategy, strong negotiation, and a marketing-first approach designed to help listings stand out in an ever-evolving market.
A true local, Lynley grew up in Pinecrest and graduated from Palmer Trinity School before attending Duke University, where she earned a BA in Psychology. Her deep roots in Miami give her a nuanced understanding of the architecture, lifestyle, and character that make each neighborhood distinct. From classic Old Spanish homes in Coral Gables to newer construction in South Miami and Pinecrest, she brings a local perspective that goes far beyond surface-level market knowledge.
Over the years, Lynley has naturally become a trusted resource for homeowners preparing to sell. Many of her clients come to her long before their home ever hits the market, looking for guidance on timing, pricing, improvements, and how to position their property thoughtfully. She approaches each listing as a strategic launch rather than a simple transaction, combining market insight, negotiation experience, and elevated marketing to help sellers move forward with clarity and confidence.
As the founder of the Lynley Residential Group, Lynley remains personally involved in every listing she represents. She leads each transaction from initial strategy through closing, ensuring that every detail — from pricing and preparation to storytelling and exposure — reflects the uniqueness of the home itself. Her work often centers on architecturally interesting properties and homes where thoughtful positioning can make a meaningful difference in outcome.
Throughout her career, Lynley has consistently ranked among the top real estate agents in Miami. She has been recognized as part of EWM's Chairman's Club, placing in the top 5% of the company; in 2022 she was honored as the #2 individual agent at the company overall with $37 million in annual sales; and she's a leader in Miami with Real Broker. With more than $100 million in career transactions and more than 60 5-star Google reviews, her experience spans a wide range of property types while maintaining a strong focus on seller representation in southern Miami.
Beyond her work with clients, Lynley is known locally for her market insight and community-focused content. Through her weekly newsletter, neighborhood videos, blog posts, and social media, she shares thoughtful perspectives on the Miami real estate market and the lifestyle that surrounds it. Her approach is informative without being overwhelming, offering homeowners a clear understanding of how market conditions affect real decisions.
If you're preparing to sell a home in Coral Gables, Coconut Grove, South Miami, Pinecrest, Palmetto Bay, or nearby areas, Lynley offers a local perspective shaped by experience, relationships, and a genuine understanding of what makes Miami homes so special. Learn more at lynleyresidential.com.