Please put down the Guns – let’s just get to the closing!

By
Real Estate Agent with United Country Ponderosa Realty

When he told me, "I will just bring cash! It's legal tender!  No one can refuse my cash! "

I pictured him walking into the closing room, guns on both hips, spurs on his boots and a huge bag of cash thrown over his shoulder; something out of an old western, for sure!

He was upset when I told him that his cash purchase meant he would have to wire the funds to the closing company.

He was furious about paying wire fees, because his money was in a few different banks.

This is a transaction well over $100,000.  I said, "No, please don't bring cash; the title company will not accept it, that is too dangerous to be carrying that much cash."

...........THEN HE SAID:

"I'm protected by Smith & Wesson"

"Well, the closer is not - she cannot be expected to carry that much cash to the bank and cash in excess of $9,999.99 will be reported to the Federal Government.  They want to be sure you are not laundering drug money through your Real Estate Transactions."

A flash of Scarface, guns, and two big guys carrying briefcases filled with cash, flashes through my mind.

 

 

 

Title Companies and Attorneys are refusing to accept cashier's checks, also - especially in "cash transactions" because many fraudulent checks have been presented.  Funds must be immediately accessible in order for the Closing Company to disburse the payoffs, pay the taxes, the seller, and all other related charges associated with the closing.

In a Real Estate transaction involving a new loan, the lender has verified buyer's funds that are available to close, and a buyer's In-State cashier's check will generally be accepted.

 

A "cash" transaction will require wired funds.

Verify with your Real Estate Agent and the Title Company what type of funds are acceptable to close

Reluctantly, my buyer agreed to wire the funds for his closing,

to forget about Smith & Wesson, and to forget about the Cash.

 

*******************************************************************************

Mary Douglas, your Mountain Broker-Associate and REALTOR®

United Country  Ponderosa Realty, Red Feather Lakes, CO

www.redfeatherlakes.com ---800-531-2195

"A Day in the Mountains will always soothe your city soul"

The information contained in Mary's blog is deemed reliable but is not guaranteed, and the opinions and        views expressed in these articles are solely those of the author.

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Website: www.marydouglas-redfeatherlakes.net

 

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Re-Bloggged 1 time:

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  1. Rebecca Gaujot, Realtor® 06/01/2009 05:18 PM
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Topic:
Home Buying
Groups:
Addicted to Active Rain
Almost Anything Goes
Club Chaos
Rookies Turning Pro
"Whacked"!!!
Tags:
closing funds
funds necessary to close
cashier checks
cash buyers

Comments 76 New Comment

Show All Comments
Rainmaker
1,592,665
Dorie Dillard
Realtor-Canyon Creek- NW, Austin TX Homes For Sale
Coldwell Banker United Realtors

Hi Mary,

What an entertaining post! Love the pictures. No cash @ closings..Title companies are not banks!

June 01, 2009 09:43 PM
Rainmaker
652,546
Bob & Carolin Benjamin
East Phoenix Arizona Homes
Benjamin Realty LLC

Good grief -- let's hope we do not need guns in the title offices.

June 01, 2009 10:09 PM
Rainmaker
509,293
Mary Douglas
REALTOR, Red Feather Lakes, Colorado
United Country Ponderosa Realty

Hi Kristi !  I'm glad you liked the pictures, and you're right - the consumer really doesn't understand it, and that's not their fault.

 

Dorie, I know most title companies would agree!  Thanks - I'm glad you liked the pics & the post :-)

 

Bob and Carolin, hopefully the agents can help keep the guns out of the title offices!

June 01, 2009 10:20 PM
Ambassador
597,083
Roland Woodworth
Short Sale and Foreclosure Resource- SFR - Clarksv
Keller Williams Realty

Got to love cash.. Unfortunately... there is a time and place for cash and the closing of a real estate transaction is not one of them. So many new guidelines like you said even on cashiers checks.

June 01, 2009 11:49 PM
Rainmaker
326,738
Gerry Khatchikian
ASA, TRC, SFR

Mary,

Congratulations on the feature!  You sure deserved one for this post.   Then again, you have a talent for writing great posts and I enjoy reading them all.

Gerry's AR signature

 

June 01, 2009 11:59 PM
Rainmaker
260,985
Christianne Gordon
REALTOR e-PRO CDPE, SFR Carson Valley Real Estate Specialist
Carson Valley Homes and Land - RE/MAX Realty Affiliates

I think it's ridiculous that title companies are not taking cashier's checks anymore. A simple phone call could verify the check. I don't agree that clients should have to wire funds. It should be their choice and a little legwork on the part of the escrow company could resolve a the fraud issues.

June 02, 2009 12:01 AM
Rainmaker
509,293
Mary Douglas
REALTOR, Red Feather Lakes, Colorado
United Country Ponderosa Realty

Roland, I love cash!! Fifty dollars in my purse, and I feel "rich" LOL!! But you're right -for real estate transactions -- cash is not a good choice.

 

Gerry, thanks for coming back! I appreciate your kind words! and  from one "Red" to another , thank you.

 

Christianne,I understand your way of thinking.   When I worked at the title company, I called to confirm many checks... the way I see it is this: when the title company deposits the check - that check is put on hold,  in the meantime they are supposed to wire ( or express) the payoff, taxes, commissions etc. Technically( in my realm of experience) they are using other funds --from other closings to pay off someone else's loan, and charges associated with the closing. This isn't really the way an escrow account is suppose to work, as each file is it's own "trust account" so to speak

I am only familiar with Colorado --- your state may be different.

 

June 02, 2009 12:26 AM
Rainmaker
200,395
Sally Dunbar
Fair Oaks Realtor - Fair Oaks Homes for Sale
Lyon Real Estate, Fair Oaks CA (Sacramento Area)

Mary - You ARE in the wild, wild west.  Pretty bizarre that he would want to trust anyone else with his money, S & W, or not.  He certainly had some point to prove.

June 02, 2009 12:26 AM
Rainmaker
509,293
Mary Douglas
REALTOR, Red Feather Lakes, Colorado
United Country Ponderosa Realty

Sally, he certainly reminded me of the wild wild west.... where is Marshall Dillon when you really need him??!!  LOL!!  I agree, it is bizarre , without a paper trail why would you give someone that much cash?

June 02, 2009 12:35 AM
Rainmaker
80,170
Kimberly Thurm
Broker Consultant / Relocation Specialist ABR, CRS, GRI, SFR
Koenig & Strey Real Living, Naperville, IL

Hi Mary,

A couple of years ago I had a buyer client show up to closing with his down-payment in cash....all $45,000 of it.  He just kept pulling money out of his pockets.  You see we were closing in the seller's attorney's office and he was a title agent for the title company and had a closer there.  Now, I have been doing this for a long time and the attorneys I was working with have been in real estate even longer.  I smiled and waited for one of the attorneys to say that the buyer would have to go and get a bank check.  But Nooooo.  The seller's attorney looked at the buyer's attorney and said you count that pile and I'll count this one.  And they did, both counting away and we closed.  I thought that was so wild.  Just when you think you know this business, something new pops up all the time.  ~ Kim

 

June 02, 2009 01:04 AM
Rainer
18,776
Cherry Temple
Real Living At The Beach

For me it is a principal of it all issue.  If the title company, which we don't have to use here insists on a type of funds, then they need to be prepared to pay for it.

June 02, 2009 07:20 AM
Anonymous #70
Anonymous
Anonymous

My Goodness Mary....you sure do live a wild life out thar in them hills.  I couldn't imagine this scenario in my area.  Another amusing Red Feather story ;-)

June 02, 2009 07:22 AM
Ambassador
984,735
Craig Rutman
Raleigh, Cary, Apex area Realtor
Helping people in transition

Another well deserved featured post Mary!

If buyers had a little more knowledge about how it all works in a Real Estate transaction scenarios like the one you depicted here wouldn't happen.

Great job informing your buyer about the legalities of what his actions could have brought upon him and everyone involved.

June 02, 2009 07:49 AM
Rainmaker
146,385
Caren Wallace
Portland Caren Real Estate
John L. Scott Real Estate

Mary, It makes me long for the days that cash was king, all that new fangled stuff makes my head hurt! Okay, wire transfers are alot more practical.....push the button, not the envelope!

June 02, 2009 08:07 AM
Rainmaker
506,595
Patricia Aulson
Realtor - Portsmouth NH Homes-Hampton NH Homes
BERKSHIRE HATHAWAY HOME SERVICES Verani Realty NH Real Estate

I agree with Gary...they are idots.  CASH....omg what's wrong with cash, it's the best!  I love cash and the color of it.

Patricia Aulson/Portsmouth NH

June 02, 2009 10:12 AM
Rainmaker
509,293
Mary Douglas
REALTOR, Red Feather Lakes, Colorado
United Country Ponderosa Realty

Hi Kim, that's a great story! Sounds like the attorney was calm as a cucumber, and didn't miss a beat!

 

Hi Cherry, I'm not sure that line of thinking will work - but I do wish you well.

 

Hi Gail, You can imagine it... the second line of the post says "I pictured him"...he really didn't come in with guns a blazing! LOL!!

 

Hi Craig, Thanks - I guess our job is to get our buyers to the table without any hiccups! They don't know what will work- but we do.  I loved his Maverick spirit, but knew it wouldn't fly.

 

Caren, I like your line ".....push the button, not the envelope!" that's a good one - I'll save that one!

 

Patricia - I love the color of cash, too! I read Gary's comment differently, though.

 

Thanks everyone, I appreciate your thoughts today!

June 02, 2009 12:10 PM
Rainmaker
250,197
Debi Boucher
"Realtor Showcase" - Real Estate Photography/Virtual Tours
Real Estate Showcase Photography

Oh Mary!!!! LOL Only in the west, huh? This is great... "Rocky Mountain Wild" used to refer to the animals.....

Debi

June 02, 2009 04:27 PM
Rainmaker
509,293
Mary Douglas
REALTOR, Red Feather Lakes, Colorado
United Country Ponderosa Realty

Hi Debi, Well at least you usually know what to expect with the animals! LOL!! People are always surprising -- interesting and surprising.

June 02, 2009 06:25 PM
Rainer
83,756
Andrew Haslett
Heartland of Kentuckynulls, Best Home Inspector
Van Warren Home Inspections, NAHI CRI

Mary, lots of people found this funny. Hmmmm.

I wouldn't say that it was ha ha funny. Maybe, ironic kind of funny.

But, then again, I was making a cash transaction, and find it annoying to have to pay over $30 in wire fees -- and it took 3 days for the wire from the date of order to the date of confirmed receipt. Heck, what happened to automatic deposits and automatic debits: they are free.

June 04, 2009 10:45 PM
Rainmaker
509,293
Mary Douglas
REALTOR, Red Feather Lakes, Colorado
United Country Ponderosa Realty

Andrew, Many people find it annoying, and it can be a huge obstacle-- depending on the state or locality ( because different areas accept different forms of payment at closing, as in the comments above).  It was written in good fun, of course it's not fun or funny to pay to have the bank send someone your money.

This was actually part 2 of a post called "At Closing: It's all about the Money" I hope you will read that one too, because, quite frankly, I don't understand the banking business, but I mostly understand the closing business.

June 04, 2009 11:24 PM
Show All Comments
Rainmaker
509,293

Mary Douglas

REALTOR, Red Feather Lakes, Colorado
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