Detailed answer

This answer explains how Florida law treats escrow (trust) funds when a deed has been executed but not yet recorded. It covers who controls the money, what recording does (and does not) accomplish, and practical steps to protect your money or clear the title. This is educational information and not legal advice.

Does unrecorded deed transfer legal title?

Under Florida law, a valid conveyance generally transfers legal title when the deed is delivered to and accepted by the grantee. Recording the deed is not required to make the conveyance effective between the parties. Recording, however, creates public (constructive) notice that protects the grantee against later purchasers or lienholders who acquire interests without actual or constructive notice.

See Florida’s recording and conveyance provisions for background: Fla. Stat. Ch. 689 (Conveyances) and Fla. Stat. Ch. 695 (Records). For a section on recording procedure, see Fla. Stat. § 695.01.

Who controls escrow funds and when can they be released?

Escrow (trust) funds are governed primarily by the written escrow or closing instructions the parties signed and, when brokers are involved, by Florida statutes and licensing rules. An escrow agent or title company must follow the written instructions that set the conditions for release. If the instructions condition release on recording the deed, the escrow agent should not release funds until the recording requirement is satisfied.

Real estate brokers holding trust funds must follow statutory duties for trust accounts. See Fla. Stat. § 475.25 (broker obligations relating to entrusted funds).

Common scenarios and legal consequences

Deed executed and delivered to buyer but not recorded: Title passed upon delivery, but a later purchaser who acquires the property without notice and records first may risk priority issues. Recording protects against subsequent bona fide purchasers.
Deed executed but not delivered (kept by seller or third party): No transfer until delivery. An escrow agent should not release funds unless the escrow instructions allow it without delivery or recordation.
Escrow instructions require recording before release: The escrow agent is bound to that condition and should retain funds until the recorded deed or official recorder’s confirmation is received.
Escrow agent releases funds prematurely: The agent could face liability to the party entitled to the funds. The injured party may have a claim for breach of contract, conversion, or other remedies.

Why many closing agents wait for recorded documents

Title companies and settlement agents routinely wait to confirm recording before releasing lender payoffs or seller proceeds. Recording confirmation protects the payor (lender or buyer) and ensures there are no competing claims that could defeat the transaction. Recording creates public notice and secures priority in the public records.

How to get funds released safely if the deed isn’t recorded yet

If you need funds released but the deed hasn’t been recorded, consider these lawful options:

Amend the escrow instructions in writing, signed by all parties, to permit release based on an agreed alternative (for example, delivery of an executed deed to the escrow agent or delivery of an executed affidavit plus a title commitment).
Obtain a certified copy of the recorded deed or a receipt from the county recorder showing the instrument number and recording date; ask the escrow agent to accept that proof.
Ask for an owner’s title insurance policy or a closing protection letter from the title company that insures against loss if recording problems arise.
Seek a court order directing the escrow agent to disburse funds (useful in disputes when parties cannot agree and the escrow agent wants judicial guidance or to avoid liability).
If a broker or escrow holder is uncertain and funds are disputed, request they file an interpleader or deposit funds with the court so the court can determine entitlement.

What to do if the other side refuses to record after funds are released

If the seller gets funds but refuses to record the deed, the buyer may have remedies including specific performance (to force a recorded conveyance), damages for breach of contract, quiet title actions, and claims under title insurance if purchased. Timing and available remedies depend on facts; quick action is often important to preserve rights and evidence.

Practical checklist before consenting to release of trust funds when the deed is not recorded

Confirm precisely what the escrow instructions require for disbursement.
Get written confirmation (from the escrow agent or title company) of the condition the agent will accept instead of recorded deed.
Obtain a recorded instrument number or a receipt from the county recorder before release.
Consider obtaining a short-term owner’s title policy or lien search showing no intervening liens or conveyances.
If uncertain, request the escrow agent interplead or seek a court order to reduce your risk.

Relevant Florida statutes and resources

Fla. Stat. Ch. 689 — Conveyances (rules on deeds and conveyances)
Fla. Stat. Ch. 695 — Records (recording and public records)
Fla. Stat. § 475.25 (broker responsibilities for trust funds)

When to talk to an attorney

If you face a dispute about escrow release, possible double conveyance, or an escrow holder’s refusal to act, speak with a Florida attorney who practices real estate law. An attorney can: review escrow instructions, request a court order if needed, start specific performance or quiet-title proceedings, and advise about title insurance and risk allocation.

Disclaimer: This is general information about Florida law and not legal advice. For advice tailored to your situation, consult a licensed Florida attorney.