Mail Away Closing does the seller have to wait to receive money

9 Replies

Hi me and my wife are selling our first property. The seller is out of town so it will be a mail away closing. My agent also said that the person loan is also from out of state. I am in Florida. So my agent text me yesterday stating would i rather bring in a blank check for wiring our money or would we rather pick up the check a few days later. She states the wiring will be a lot faster but I don' t understand why we have to wait to get our money if they going to already have the keys. The agent say its because its a mail away and the buyer is not here. When we purchase the property the seller came and did his closing before us and left with his check. I don't understand why we can't get a check the same day as closing. Will somebody please let us know f this is normal to wait to receive your funds. What should we do just take the blank check and wait for wire transfer or should i be putting pressure towards getting our check at closing. Please help the closing is monday.

I am a little confused by your post.  You mention the Seller, but I think you mean YOU are the Seller, and the BUYER is out of state.  Is that correct?

My best guess, if I understood your question correctly, is that the Buyer's closing paperwork is being mailed to them for signing.  They will not be able to come to the title company to sign.  Therefore, the pacakge will be mailed back to the title company in order to record.  You, as the Seller can't get your proceeds until the property records.  Therefore, if you have already signed ahead of the Buyer, you will have to wait until all funds and paperwork are received back to the title company and it records.

Wiring your funds is for your convenience.  It sounds like the title company is allowing you to have this option instead of mailing you a check (which would take even longer), or having you come back to the title company to pick up a check.  Wiring funds is a common practice for title companies to do, and it puts those funds immediately in your account instead of having to wait for a check to clear.

I hope that answers your questions.

next day air is a thing.... and it works or if you REALLY had to you can do  this (probably not worth it haha)

I would have the buyer wire the funds.  The title company can verify with the buyer's bank that the wire has been initiated.  You can also ask the title company to hold the keys until you receive proof that the buyers have initiated the wire at their bank.  If the buyer initiates the wire in the morning then the funds should arrive at the title co a few hours later or at least the same day.  Unless they are dealing with some stone age bank the wire should only take a few hours at best.  

I had a funding delay once because the closing was on a Friday and the buyer waited to late in the day to initiate the wire.  So the transaction was funded on Monday.  Since then I try to avoid Friday closings, because if there is a glitch then you have a weekend to wait it out.  

These out of state buyers should have also received a preliminary HUD (closing statement) via email so they know the amount needed for the wire. Unless they do not use email which would be rare these days. So really no need to delay funding on their end as long as they have the correct amount to wire.

We did this type of purchase/ closing recently. Have them wire you the money. Buyer shouldn't get keys until wire to you is confirmed. It may take an hour or so for $ to show in your account, and your bank may charge a fee ($25 or so), but much less stressful than waiting for check to arrive, and then clear.

Until every last step of the closing is complete, you are not receiving funds.

If there is a mail-away element involved on either buyer or seller-side, the title company needs to receive the original signed documents prior to disbursing the file. FedEx loses packages all the time. If the file disburses before your signed Deed (or the lender's signed Note) is in escrow... huge problems for title.

Time of recording has no bearing on seller receiving funds.

The lender won't allow funds released to the title co. until all doc.s are rec'd from buyer.

A day or two delay shouldn't be a big deal, but if the buyer received and returned the doc.s in time there is no need for a delay.

this is a normal closing and your describing a wet closing that is common in some markets.

simple answer is you don't authorize the keys and possession to be given until you receive your funds either by wire.. snail mail or you drive over and get a check.

out in the west coast closings take a few days you NEVER get your funds the same day.. its always one to two days later.. Banks in this area won't release the loan funds until they have recording numbers back from the county.. and most title co. don't record till late in the day.. so it will record on a Thursday and disperse on a Friday.. but if it records on Thursday buyer has performed and they expect their keys but you know the money is with the title co. they are just waiting for the bank to open to wire.

I have not seen a paper check on the west coast for sellers proceeds in over 20 years.. its simply not done everything is wire.. I would not even accept a paper check because the funds can get held by your bank ( not me or my bank) but many folks if they are getting a whopper check and never have more than a few grand in the account the bank is going to hold funds until the check clears... with a wire its instant money is there its collectable..

@Jay Hinrichs Hey -- around here only Virginia requires recordation prior to disbursal.  Florida (OP state?) does not for sure. But good point on the KEYS. No wire, no keys. Title company can hold keys in escrow as well. 

@Tom Gimer   Not sure on CA but I know WA and OR big conventional lenders require recording numbers prior to them sending in their funds.. and allowing file to disperse..

that's why our closings are always 3 day affairs..  buyer comes in usually 3 days early so the 3 day right of recession can run.. then I will come in and sign  and then if every thing goes right I get the money next day.. and like one other person said Friday closings mean Monday or Tuesday funding ALWAYS

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