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Personal Finance (Not Investing) • The practicalities of wire transfers--is it really this easy? What can go wrong?

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Given the frequency of real estate transactions for the average person, it is unclear to me why someone would not just hand carry a money order to a title company or pick up a paper check in person after settlement if a seller, at least when feasible.
When I sold a house in 2017 I was told at the closing that wire transfer was the ONLY way the funds would be transferred from the buyer's bank (that was in Virginia).

When I bought a house in Colorado in 2002 I brought a cashier's check for the down payment to the closing. The mortgage company was going to wire their funds later in the day. The agent explained that this was a common real estate business practice.

When I bought a house in 1993 (also in Colorado) I brought a cashier's check to the closing. When I sold that house in 2002 a check was mailed to me.
Perhaps VA doesn't use escrow for closing. Every real estate transaction I've done has involved either my hand carrying a cashier's check to a title company or picking up a paper check from a title company. Even if you don't make a mistake typing in an account or routing number, there have been instances where someone did a wire, and the funds did not show up in a timely manner at the destination after being debited from the source. That scenario would be unwelcome stress when closing a real estate transaction.

Statistics: Posted by Northern Flicker — Thu Aug 08, 2024 2:55 pm — Replies 39 — Views 2955



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