The rules and regulations governing the expectations of real estate brokers in Florida are complex. Although resolution of a dispute depends on the details of the case, the following general information is beneficial for most brokers in the state:
Do I need my own escrow account? No. State law does not require brokers have their own escrow accounts. However, Chapter 61J2-14.010 of the Florida Administrative Code, along with Section 475.25(a)9K) of the Florida Statutes requires brokers promptly place any funds received in connection to a real estate transaction into an escrow account or trust, bank account, credit union, or title company.
When do I need to put the funds into an account? State law requires a broker transfer the funds immediately. State law defines “immediately” as before “the end of the third business day.” The law does not consider Saturdays, Sundays and all legal holidays when counting business days.
Are there requirements regarding the monthly reconciliation statement? Yes. Per Rule 61J2-14.012(2) of the Florida Administrative Code, a broker’s monthly reconciliation statement for an escrow account must include the “date the reconciliation was undertaken, the date used to reconcile the balances, the name of the bank(s), the name(s) of the account(s), the account number(s), the account balance(s) and date(s), deposits in transit, outstanding checks identified by date and check number, an itemized list of the broker’s trust liability, and any other items necessary to reconcile the bank account balance(s) with the balance per the broker’s checkbook(s) and other trust account books and records disclosing the date of receipt and the source of the funds.” Florida’s Department of Business and Professional Regulation’s Real Estate Commission requires the completion of this statement monthly.