What Is the Difference Between the Initial Contract Deposit and the Additional Contract Deposit?

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In this tutorial video, we'll go over the difference between the initial contract deposit and the additional contract deposit specified in the standard Florida Realtor purchase contract.

We'll display screenshots from the standard Florida Realtor contract and go over what they mean in standard practice, without providing any legal advice.

This video will be especially helpful for buyers coming from locales where norms differ like NYC, where typically only one contract deposit is sent.

Essentially, an initial contract deposit is customarily given early on after contract signing, and it usually is for a more nominal amount such as $5,000 when 3 days of the Effective Date (i.e. contract fully executed by both sides).

Then it's customary in Miami and Florida generally for the remainder of the contract deposit, i.e. 10% of the contract price, but this is negotiable, to be sent to the escrow agent some day later, such as 10 days after the Effective Date.

This is all very important for the buyer, because every time more money is sent into escrow, it makes it more onerous for the buyer to cancel the contract even if they have the right to (i.e. during the Inspection Period for essentially any reason).

That's because they'll still have to ask the escrow agent to wire or send them their deposit back, and that's a bit of a hassle even if they have every right to cancel.

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Hauseit Group LLC, Licensed Real Estate Broker
Tel: (888) 494-8258 | https://www.hauseit.com
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