Key Takeaways
- Florida uses the FAR/BAR contract (Florida Association of Realtors/Florida Bar) as the standard residential contract
- The FAR/BAR contract is not promulgated by the state—it is developed by industry organizations
- Earnest money must be deposited within specified time frames, typically within 3 business days
- Florida requires an inspection period during which buyers can terminate for property condition issues
- Electronic signatures are valid in Florida under the Uniform Electronic Transaction Act
Last updated: January 2026
Florida Contract Law
Florida does NOT have state-promulgated contract forms like Texas. Instead, industry organizations develop standard contracts.
Standard Florida Contracts
FAR/BAR Contract
The most commonly used contract is the FAR/BAR Contract:
| Feature | Description |
|---|---|
| Developers | Florida Realtors and The Florida Bar |
| Status | Not state-promulgated |
| Use | Recommended, not mandatory |
| Revisions | Updated periodically |
Other Contract Options
| Contract Type | When Used |
|---|---|
| FAR/BAR "As Is" | Property sold without repairs |
| Builder contracts | New construction |
| Attorney-drafted | Custom transactions |
| Commercial contracts | Business property |
Key Contract Provisions
Earnest Money (Deposit)
| Provision | Typical Terms |
|---|---|
| Initial deposit | Due within 3 days of effective date |
| Additional deposit | May be required at specified time |
| Escrow holder | Title company or attorney |
| Interest | To buyer unless otherwise agreed |
Inspection Period
The contract provides an inspection period during which:
- Buyer can inspect the property
- Buyer can cancel for property condition
- Length is negotiated (often 10-15 days)
- Similar concept to Texas option period (but no separate fee)
Broker Escrow Requirements
Deposit Timing
Florida brokers must deposit funds promptly:
| Situation | Deposit Deadline |
|---|---|
| Sale or purchase | End of 3rd business day after receipt |
| Rental (under $5,000) | End of 3rd business day |
| Rental ($5,000+) | End of 3rd business day |
Escrow Accounts
Brokers must maintain escrow accounts that are:
| Requirement | Details |
|---|---|
| Federally insured | FDIC or NCUA |
| In Florida | State-chartered or authorized bank |
| Non-interest bearing | Unless parties agree to interest |
| Designated | As escrow or trust account |
Conflicting Demands
When there are conflicting demands for escrow:
| Option | Description |
|---|---|
| Mediation | Attempt to resolve |
| Arbitration | If agreed to by parties |
| Interpleader | File with court, deposit funds |
| Maintain | Hold funds pending resolution |
| Notify FREC | Required within 15 business days |
Electronic Transactions
E-Signatures Valid
Florida's Uniform Electronic Transaction Act allows:
| Electronic Method | Validity |
|---|---|
| Electronic signatures | Valid |
| Electronic contracts | Valid |
| Electronic records | Valid |
| Exception | Some documents still require ink (wills, etc.) |
Default and Remedies
Buyer Default
If buyer defaults, seller may:
- Retain deposit as liquidated damages (if agreed)
- Sue for specific performance
- Sue for actual damages
Seller Default
If seller defaults, buyer may:
- Receive deposit refund
- Sue for specific performance
- Sue for actual damages
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Test Your Knowledge
By when must a Florida broker deposit earnest money received from a sale transaction?
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Test Your Knowledge
What must a Florida broker do when there are conflicting demands for escrow funds?
A
B
C
D