WHY CAN'T I BRING A PERSONAL CHECK TO CLOSING? BUYERS FAQ

By
Real Estate Agent with Coldwell Banker Vanguard Realty

WHY CAN'T I BRING A PERSONAL CHECK TO CLOSING? BUYERS FAQ

The day of settlement or closing on a house is the day when all the funds needed for the purchase must be received and accounted for.

The Buyer is responsible for bringing their funds (such as closing costs and down payment minus earnest money) and the bank is responsible for wiring the balance of the loan.

All monies must be in 'liquid' form. A cashier's check or certified bank check or wire are what a Buyer must bring to the closing table.

So why can't I bring a personal check?

A personal check is not 'liquid' and it is not guaranteed. Just because someone writes a personal check doesn't mean the funds are in the account. On closing day, all the money must be guaranteed and accessible.

For every rule, there is an **exception: sometimes there is an extra amount that was overlooked and the Buyer will have to write a personal check. As long as it's around $500 or less, the attorney or title company will accept it.

So the next time you are buying a house, remember, no personal **checks!

Posted by

 

-------------------------------------------------------------------------------

About the Author: Sharon Alters works with her husband, Frank. They are in the top 5% real estate agents for production in the Jacksonville Florida area, specializing in Military and Corporate Relocation in the Fleming Island, Orange Park, St. Johns, St. Augustine and Beaches areas. Their local knowledge can help Relocating Buyers find the perfect lifestyle, whether it is a Castle on the Ocean, or a Cottage in the Country. 

Call/text 904-673-2308 or sharon@teamalters.com

More information about houses for sale and area news/events

Serving 

           Jacksonville * Fleming Island * Orange Park * St. Johns * St. Augustine * Ponte Vedra

If Original Photography, All Rights Reserved. 

Subscribe to my blog - Orange Park Realtor, Fleming Island   Realtor

Connect with us on FacebookFollow us on TwitterVisit Our Profile On ActiveRainLinkedInYou Tube

Google + Fleming Island FL Real EstatePinterest

 

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
Home Buying
Groups:
florida realestate
Advice for Buyers
Bartender, Make it a Double
Buyer Information - What Buyers Need to Know in Today's Market
BananaTude
Tags:
buyer tips

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Rainmaker
354,224
Debbie Cook
Long & Foster Real Estate, Inc - Silver Spring, MD
Silver Spring and Takoma Park Maryland Real Estate

I sold a little waterfront cottage in a tiny small town in Southern Maryland.  The loan was a Va Loan.  I told the buyer to bring a certified check to closing, he was very upset and said he thought that I was wrong and way off base.  Sure enough, I called the settlement attorney in the same litte town and he informed me that of course this buyer could bring a personal check to the closing.  You just never know. 

Jun 05, 2012 08:09 PM #1
Rainmaker
979,653
Sharon Alters
Coldwell Banker Vanguard Realty - Fleming Island, FL
Your Fleming Island Relocation Agents.

What? Well that's a first. It would never happen in a large city like Jacksonville. Must be a small town thing.

Jun 05, 2012 09:08 PM #2
Ambassador
1,481,734
Anna Banana Kruchten
Phoenix Property Shoppe - Phoenix, AZ
Arizona's Top Banana of Real Estate!

Sharon and Frank - it would not happen here in AZ as well (unless it was a small town thing). Most people wire funds directly to title so title company knows the funds are good and they can close.

Jun 05, 2012 09:14 PM #3
Rainmaker
979,653
Sharon Alters
Coldwell Banker Vanguard Realty - Fleming Island, FL
Your Fleming Island Relocation Agents.

Anna, I am a big fan of wires. Makes it so much simpler!

Jun 05, 2012 09:25 PM #4
Ambassador
1,345,550
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Selling Daytona paradise for heavenly good prices

Sharon - actually according to our contracts it can't be a cashier's check, it has to be wiring. They have changed the sording from guranteed funds to "collected" funds, and in standard "S"of, for example, AS IS Contract, they describe what it means. If I remember correctly, the first to explain it on AR was Richard Zaretsly, who said that the only way to do it is wiring the money.

If the Buyer want to use cashier's check, they can, but they have to send it 4 days prior, so that the title company can clear the money in their account.

Technically, the new requirement meand that the money have to be cleared in the Title company's account. I know that people say that cashier's checks are guaranteed.

Actually, not. And there was a string of scams involving themin Flroida, which prompted FAR/BAR to make changes to the contract.

There are still attorneys, and title companies that would do it with a check, but when I asked them and whoed them the contract with the explanation, turned out they did not know about it. In some of my recent blogs I have a link to a Florida attorney anwwering this question in a newspaper, and he went in detail why now it is wiring, not cashiers check.

If this attorney was agreeing to take a personal check, it means that he was risking his own money. Why not, if he has extra?

Jun 05, 2012 10:14 PM #5
Rainmaker
995,734
Joe Petrowsky
Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709 - Manchester, CT
Your Mortgage Consultant for Life

If you have been in the mortgage or real estate business as long as some of us, we could all tell stories about a personal check being used at a closing. Some of these story involve checks that bounced.

Jun 06, 2012 03:08 AM #6
Rainmaker
313,177
Frank Laisch
Stewart Title Company - Tampa, FL
"The Insurance Guy"

Sharon and Frank, I have seen the horror stories of both personal checks as well as bogus cashiers checks at closing. wiring seems to be the norm these days. 

Jun 06, 2012 05:09 AM #7
Rainmaker
551,280
Amanda S. Davidson
Living A Dream Real Estate - Alexandria, VA
Your Northern Virginia Realtor

Sharon- No personal checks over $1,500 here. Wires are most common at this point though, so much easier for everyone. Nice post!

Jun 06, 2012 03:26 PM #8
Ambassador
1,345,550
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Selling Daytona paradise for heavenly good prices

Geez, I read my comment and there are so many typos, I wanted to edit, but it is too late, sorry for that.

Jun 06, 2012 10:23 PM #9
Post a Comment
Spam prevention
Show All Comments
Rainmaker
979,653

Sharon Alters

Your Fleming Island Relocation Agents.
Want to put our experience to work for you?
*
*
*
Spam prevention

Additional Information