Real Estate Deposit Disputes & Interpleader – St. Augustine Attorneys

Protecting Your Earnest Money, Contracts, and Closing

When a Florida real estate deal stalls or collapses, the escrow deposit (earnest money) often becomes the first—and fiercest—dispute. Whether you’re a buyer seeking a refund or a seller claiming the deposit as liquidated damages, St. Johns Law Group’s real estate attorneys move quickly to evaluate the contract, preserve leverage, and resolve the dispute through demand letters, mediation, negotiated releases, or interpleader litigation.

13 Attorneys and Over 265 Years of Combined Experience

With decades of real estate experience across St. Augustine, St. Johns County, and Northeast Florida, our team understands FR/BAR contracts, addenda, inspection and financing contingencies, and the practical realities of working with realtors, brokers, title companies, and escrow agents.

Common Reasons Deposit Disputes Arise

• Inspection & Repair Issues: Unresolved inspection items or missed notice deadlines.

• Financing Contingency Problems: Loan denial letters, appraisal gaps, or missed financing milestones.

• Default Allegations: Failure to close on time, refusal to sign addenda, or non-performance of contract obligations.

• Title or Survey Objections: Unresolved liens, encroachments, access/easement problems, or failed title cure.

• Buyer’s Remorse / Seller’s Breach: Walk-aways versus sellers failing to deliver clear title or agreed condition.

• Ambiguous Addenda / Poor Drafting: Conflicting timelines, undefined terms, or missing signatures.

How We Resolve Deposit Disputes

1. Rapid Contract & Timeline Review
   We analyze the executed contract package (e.g., FR/BAR “As Is” or Standard, riders, addenda), email trails, extension agreements, and proof of notices. We build a day-by-day critical date map to identify who performed—or missed—what and when.

2. Leverage Through Notices & Demands
   We prepare demand letters and formal notices requesting release of escrow or curing of breach. When appropriate, we propose mutual releases or targeted amendments (e.g., limited extensions, appraisal gap solutions).

3. Mediation & Negotiated Releases
   Most Florida real estate contracts require pre-suit mediation. We prepare the case (facts, exhibits, damages, fees exposure) to resolve efficiently—often the fastest path to a signed Escrow Release and Cancellation.

4. Interpleader Actions
   If the escrow agent (title company, broker, or attorney) cannot safely release funds, an interpleader may be filed so the court decides who gets the deposit. We represent buyers, sellers, and escrow agents—mitigating fee risk, seeking fee shifting where allowed, and pushing for expedited outcomes.

5. Litigation, When Necessary
   When settlement fails, we pursue or defend liquidated damages, specific performance, or breach of contract claims tied to the deposit dispute—coordinating with your realtor, lender, and closing professionals.

Interpleader 101 (For Buyers, Sellers & Escrow Agents)

• What it is: A neutral stakeholder (escrow agent) asks the court to determine the rightful owner of the deposit and to discharge the stakeholder from liability.

• Why it happens: Conflicting demands, unclear contract performance, or risk of double liability.

• Process: Stakeholder files; funds are deposited with the court; buyers/sellers litigate entitlement; the court may award stakeholder fees/costs.

• Our role: We prosecute or defend entitlement claims, manage attorney’s fee exposure, and seek efficient resolution through early case assessment and targeted motion practice.

Buyer vs. Seller: What You Must Prove

Buyers (seeking refund):

• Timely delivered notices (inspection, title, financing).

• Contractual basis to cancel (unresolved title defect, failed financing despite diligent effort, inspection termination within deadline).

• Documented lender denials/appraisal issues when required by the contract.

• Evidence of seller breach (inability to deliver clear title, failure to complete agreed repairs, access issues).

Sellers (seeking liquidated damages):

• Buyer default (missed deposit, failure to close, late or no notice).

• Contract language making deposit liquidated damages and exclusive remedy (if applicable).

• Proof seller was ready, willing, and able to close (marketable title, closing documents, compliance with notice/cure).

• Damages preserved (carry costs, backup offers lost) when pursuing alternatives to liquidated damages.

What to Do Right Now (Checklist)

• Collect Your Documents: Executed contract, riders, addenda, email threads, inspection reports, appraisal, loan denials, title commitment, survey, cure notices, extensions.

• Write a Timeline: Contract effective date, deposit due dates, inspection/financing deadlines, title objection/cure, clear-to-close, closing date.

• Pause Unnecessary Communications: Let counsel direct strategy and messaging to avoid admissions or waiver of rights.

• Preserve Evidence: Keep emails/texts with the other side, agent, lender, and title/escrow.

• Call Our Team: Early strategy prevents missed deadlines and lost leverage.

Why St. Johns Law Group

• Full Real Estate Bench: 13 attorneys spanning contracts, title, closings, land use, and litigation.

• Local Knowledge: Daily work with St. Johns County, St. Augustine, St. Augustine Beach, Nocatee, Ponte Vedra, Palm Coast.

• Title & Closing Experience: We routinely coordinate with St. Augustine Title & Escrow and other agents—understanding the operational side of escrow and releases.

• Speed & Practicality: Focus on quick, cost-effective outcomes—secure the release, settle fast, or file when necessary.

• Dedicated and Responsive®: Clear communication with clients, agents, and lenders.

Related Real Estate Services

• Real Estate Contracts & Amendments (drafting, extensions, appraisal gaps, post-closing agreements)

• Real Estate Contract Disputes & Remedies (specific performance, damages)

• Title Insurance Claims & Title Objections (defects, curative work)

• Easement Law & Easement Agreements (access, encroachments, 2024 §704.09 updates)

• Boundary, Survey & Encroachment Disputes

• Partition Actions (co-owner disputes)

• Closing Cost & Critical Dates Calculators (FR/BAR “As Is,” Standard, CRSP)

• Civil Litigation & Appellate (when disputes escalate)

FAQs: Florida Real Estate Deposit Disputes

Q1: Can the escrow agent just release the money?
Only if both parties sign a consistent release or the contract allows a clear unilateral release. Otherwise, the agent risks liability and may require mediation or interpleader.

Q2: What if my financing fell through?
If your contract includes a financing contingency and you timely delivered the required notice/denial, you may be entitled to a refund. The details matter: deadline calculations and proof of diligent effort are critical.

Q3: Does the “As Is” contract mean I can cancel for any reason?
No. FR/BAR “As Is” gives an inspection termination right within a deadline. Miss that deadline or fail to send proper notice, and the right may be waived.

Q4: What happens in an interpleader?
The escrow agent deposits the funds with the court and exits. Buyer and seller litigate entitlement. The court may award part of the funds for stakeholder fees/costs; the balance goes to the prevailing party.

Q5: Can the seller still sue me after taking the deposit as liquidated damages?
Usually the deposit is the exclusive remedy if liquidated damages are elected, but review the exact contract language and any carve-outs (e.g., attorney’s fees, specific performance under certain forms).

Q6: How fast can this be resolved?
Many disputes settle quickly once counsel clarifies the timeline and notices. Mediation is often required and can conclude the matter in days or weeks. Litigation varies based on court calendars and issues.

Areas We Serve

St. Augustine • St. Augustine Beach • St. Johns County • Ponte Vedra • Nocatee • Palm Coast • Flagler County • Duval County • Clay County • Putnam County • Nassau County

📞Call Experienced St. Augustine Real Estate Attorneys

📞 Call: (904) 495-0400
📧 Email: info@sjlawgroup.com
📍 Office: 104 Sea Grove Main Street, St. Augustine, FL 32080

We’ll review your contract and deadlines, advise on leverage, and pursue the fastest path to a signed escrow release—or file interpleader/litigation to protect your rights.