Investor · South Portland, ME · Member since 2014 · 21 posts · 25 votes
Hey folks - I'm selling a property that I own outright, and I have a couple of questions:
1. Should I request the funds via a cashier's check or wire transfer? The seller is purchasing with private money/ cash.
2. How do I know how much money I have to bring to the closing as seller? (I am thinking this is just transfer tax, but also may be pro-rated property taxes, though I'm not sure if I am responsible for knowing this).
I realize these are pretty basic questions - and I did have my lawyer review the P&S, for the record. Thanks in advance for any advice!
Real Estate Broker · Rock Springs, WY · Member since 2015 · 57 posts · 43 votes
9y
I'm not sure of the rules in Maine. Are you working without a real estate agent? If you have one, they should be willing to answer any of your questions. If you are closing with a title company (again, don't know how it works in Maine). If you have a title company doing your closing, or whoever your closing agent is, they should be able to tell you how much exactly you need to bring on the day of closing as it will be different daily, based off of as you said property taxes, etc. They will likely require a certified check or money order so you need to know the amount up front. Also, the money the buyer brings will be required to be a certified check or money order that will go to the closing company and then the closing company will issue you a check. You're check will not come directly from the buyer so it doesn't really matter if the money is a check or a wire transfer, everything is certified and the title company will be good for the money.
Real Estate Broker · Rock Springs, WY · Member since 2015 · 57 posts · 43 votes
9y
I'm not sure of the rules in Maine. Are you working without a real estate agent? If you have one, they should be willing to answer any of your questions. If you are closing with a title company (again, don't know how it works in Maine). If you have a title company doing your closing, or whoever your closing agent is, they should be able to tell you how much exactly you need to bring on the day of closing as it will be different daily, based off of as you said property taxes, etc. They will likely require a certified check or money order so you need to know the amount up front. Also, the money the buyer brings will be required to be a certified check or money order that will go to the closing company and then the closing company will issue you a check. You're check will not come directly from the buyer so it doesn't really matter if the money is a check or a wire transfer, everything is certified and the title company will be good for the money.
Investor · South Portland, ME · Member since 2014 · 21 posts · 25 votes
9y
Thanks Emily. I am not using a real estate agent, and I am working through the buyer's chosen title company and the buyer's realtor. So it sounds like I should simply ask the title company directly as to what sort of funds I need to bring to the close - would I also see a HUD statement in this case? Safe to assume simply bringing my personal checkbook will suffice to make these payments?
Good to know that the title company will issue certified funds in one form or another.
Palo Alto, CA · Member since 2017 · 226 posts · 95 votes
9y
Title companies should prepare estimated closing statements for both buyer and seller. Most often the fees owed by the seller are taken out of the money paid into escrow by the buyer.
Rental Property Investor · Austin, TX · Member since 2016 · 1k+ posts · 1k+ votes
9y
@Sean Sullivan You should receive a HUD a day or two prior to closing. Typically the title company will deduct any of your charges (transfer tax, deed prep, etc) from your proceeds and the check you receive from that title company will be the net amount owed to you. Their money is good so a check or wire makes no difference aside from your own personal preference.
Real Estate Entrepreneur · Mid West, East Coast · Member since 2015 · 3k+ posts · 1k+ votes
9y
@Sean Sullivan You should not have to bring any money to the table unless you have a judgment and or lein that exceeds the purchase price. Anything you need to pay such as utilities, taxes etc... gets deducted from your proceeds from the buyer. I like wire myself, that's if your comfortable sharing your account information with the title company. Otherwise they can Overnight the check to you if your not local. Best of luck to you with the sale!
Real Estate Entrepreneur · Mid West, East Coast · Member since 2015 · 3k+ posts · 1k+ votes
9y
@Sean Sullivan don't forget to use the @ symbol when referencing a BP member as this will alert the member to the conversation so they can respond. Best of luck to you!
Investor · South Portland, ME · Member since 2014 · 21 posts · 25 votes
9y
@Shawn Ackerman got it. Thanks to you and @Jeff Keller and @Ryan Murdock and @Emily Lopez for the info. I feel more comfortable now - and will plan to ask the title company for the HUD, then just show up (it is a local closing) to sign the paperwork and grab the check. I appreciate the help - this is the first cash - cash deal that I've done and it's helpful to understand the process.