House closing question?

Question

I am selling a house in another state,the couple buying it are paying for it when we close.My question is when I get their check on closing day will I have to hold the check or will I be able to cash then and if I do have to deposit the check will there be a hold put on the check.We are using a lawyer to do the paperwork.Thanks

Answer 1

There are 2 parts to the "closing".   One day the buyers will sign papers and deposit their down payment.   This is called "closing" but they don't own the house yet.  They don't get keys.   1 or 2 days later, the check for the mortgage will arrive at the escrow company.  This, also, is not the "closing".   In 1 hour or 1 day after this loan money arrives, the deed will be recorded at city hall.  This is the Closing.  Your check is prepared in the next hour.  It is not a cashiers check.  It is a regular check written by a privately owned business- the escrow company.  That check may take 1 day or 10 days to clear.   Offer to pay the $15 for the money to be wired to your account.  Then the money is available as soon as it arrives.

Once the deed is recorded, they can not back out.  Use the money any way you wish. /

Answer 2

wow

Answer 3

the check is usually a bank check or an atty's check (the funds have been set aside to pay on this type of check). some banks may still put a temp hold (3 days) on the money

Answer 4

the lawyer should get the check and deposit it into his account to clear then you get your cut

Answer 5

Usually the lawyer requires the buyer to pay with certified funds (cashiers check or wire) then the attorney cuts you a check.  With a home purchase once papers are signed there is no "changing minds"- no rescission period on a purchase, only a refinance.  So you should get a check from the lawyer for your proceeds.  You can deposit immediately or cash (if the bank will allow it- sometimes they want to hold check for a few days).  The attorney takes the deed to the county registers office & gets it recorded- you can cash check before that's done since the lawyer is required to take care of that part.  Hope this helps!

Answer 6

If they are paying cash, you should tell your lawyer or realtor to request that the check be in a form that is guaranteed that the funds are on deposit.  I don't know if that's a certified check, or a cashier's check, or what the name is.  Your lawyer and realtor will know - if they don't, you've got the wrong pros working for you.

If the buyers are financing the purchase with a mortgage, the mortgage company should issue a check to you.  You can probably trust this to have the funds on deposit to cover it.  You should be able to take that to your bank, I would think.  But that's up to the bank to decide if there is any hold on the funds until the check clears.  Ask yours what their policy is in this case.

Answer 7

Once all the documents are signed, the check can be cashed.

Answer 8

Check with the settlement company or closing attorney in advance.

Generally, you won't receive payment until the deed's been transferred. That shouldn't take long--a couple of days.

As for the check itself, if you need immediate access, ask that the proceeds be wired into your account. There will be a charge for that--maybe $15 or so--but that'll give you immediate access. (It's similar to a direct deposit for a paycheck.)

I don't think you really want to be walking around with a check for $20,000, $100,000, $200,000, or more. However, if you do, then make sure the check is a certified check. Double-check with your bank before hand to verify that that'll give you immediate access.

So: Check with the settlement company. Consider having the funds wired directly to your account. Otherwise, check with your bank on the form of payment that'll give you the quickest access.

Good luck.