Not Getting Paid Before Escrow Closes? Selling a Condo

2 Replies

My parents are selling their condo & I wanted to get some advice to pass on to them

Situation:

Escrow is suppose to fund & close tomorrow (Friday), but the escrow company told my parents that their money from the sale, won't be available until Monday.

Is this shady or just industry standard?

Any advice or insight is much appreciated!

@Chase Miller - depending on the size of their profit that is pretty normal. If it is small they can issue a check at closing but larger funds usually are wired. Especially if the closing is in the afternoon it takes time

Brie Schmidt, Real Estate Agent in Illinois (#471.018287) and Wisconsin (#57846-90)
Originally posted by @Chase Miller :
My parents are selling their condo & I wanted to get some advice to pass on to them
Situation:

Escrow is suppose to fund & close tomorrow (Friday), but the escrow company told my parents that their money from the sale, won't be available until Monday.

Is this shady or just industry standard?

Any advice or insight is much appreciated!

Is this a CA escrow? If it's the last Friday of the month, escrow will spend all its time and energy recording all the sales and refis scheduled to close on the last business day of the month.

What does escrow mean by "available"? Checks can usually be picked very late in the day or the next business day, or will be mailed. In some counties, recording is now online and can go to the end of the day. So it might not be possible for a deal recording at 4:00 to have funds ready to be dispersed by end of business day. Your parents can also opt for a wire transfer. Even then, funds processed late today wouldn't be available until Monday.

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

Lock We hate spam just as much as you