In case of escrow dispute and/or good-faith doubt, what actions must the broker take?

• A. Notify FREC within 15 business days and institute 1 of 4 authorized settlement procedures within 30 business days
• B. Notify only if the dispute goes to court
• C. Do nothing until both parties sign a new contract
• D. File a grievance with the real estate board immediately

Answer: (A)

When there is an escrow dispute or good-faith doubt about who is entitled to the funds, the broker must act quickly to protect the money and move toward resolution. Specifically, the broker must notify the Florida Real Estate Commission within 15 business days of learning of the dispute or doubt, and within 30 business days institute one of four authorized settlement procedures to resolve the matter. Those procedures provide formal paths to determine entitlement and disburse the funds, rather than leaving the funds in limbo or risking improper disbursement.

The four options typically include methods like taking the dispute to court (interpleader) or using mediation, arbitration, or a civil action to decide who should receive the escrow funds. This structure ensures a neutral, court-backed or ADR-backed process is used to settle disputes.

Choices that say to wait for court action, do nothing, or file a complaint with a board do not address the required protective and formal dispute-resolution steps within the mandated timeframe, so they aren’t appropriate.