Escrow/trust funds must be deposited no later than the end of the third business day after the broker receives them.
Before you read
Test yourself first: 5 questions
Question 1 of 5
A Florida broker wants to place escrow funds into an interest-bearing account. What is required?
Answer: B. Escrow funds may be placed in an interest-bearing account only with the written consent of all parties to the transaction, and the agreement must specify who receives the interest and when it is to be disbursed.
Question 2 of 5
A broker must deposit trust funds into the brokerage escrow account no later than the end of which business day after the funds are received by the brokerage?
Answer: C. Florida requires brokers to deposit escrow funds into the trust account by the end of the third business day following receipt of the funds by the brokerage.
Question 3 of 5
The improper mixing of a broker's personal or business funds with clients' escrowed trust funds is known as:
Answer: B. Commingling is mixing trust (escrow) funds with the broker's own money. Conversion is the unauthorized use of those funds. Both are serious license-law violations in Florida.
Question 4 of 5
A Florida broker holds escrow funds in the brokerage trust account. By when must the broker deposit a buyer's earnest-money check into that account after the sales associate receives it?
Answer: A. The broker must deposit trust funds into the escrow account immediately, but no later than the end of the third business day after the funds were received by the licensee (the sales associate).
Question 5 of 5
In Florida, what term describes a broker mixing escrow (clients') money with the broker's own personal or business funds?
Answer: B. Commingling is mixing trust funds with the broker's own funds. It is prohibited because it endangers client money and obscures recordkeeping, even if no money is misappropriated.
Keep the streak going with more questions like these, each with a full rationale.
Must-know rules
- Sellers and their agents must disclose known material defects not readily observable (Johnson v. Davis duty).
- Escrow/trust funds must be deposited no later than the end of the third business day after the broker receives them.
- Brokers maintaining escrow must keep accurate records and reconcile accounts monthly.
- Doc stamp tax on deeds: $0.70 per $100 of consideration (statewide rate).
- Homestead exemption: up to $50,000 on assessed value for qualifying primary residences.
- Save Our Homes: caps annual assessed-value increases on homestead property at 3% (or CPI, whichever is lower).
- Florida is not a community property state; spousal/marital property rules differ accordingly.
Florida Required Disclosures & Escrow/Trust Timeframes: FAQs
Is Florida Required Disclosures & Escrow/Trust Timeframes on the real estate exam?
Yes. State License Law is a scored domain on the Florida real estate licensing exam, and this topic appears in the state license-law portion.
Is this cheat sheet free?
Yes — every page on Cinna RE's resource library is free to read, print and share. The app adds practice questions, mock exams and a readiness score.
Does Florida test this differently?
Florida applies its own license law on top of the national portion. This page covers the Florida rules specifically, which is what the state section of your exam tests.
