When Should I Wire Funds to Title Company?

[natty650]

Hi folks - I've seen that some people wire funds when they send back closing docs, and others wait until they receive confirmation that the seller has done their part from the title company. What is best practice for sending funds? I didn't think that my money would be at risk if I sent them ASAP, but maybe I'm missing something? Or is it to prevent money sitting in escrow while I could be gaining interest on it? Please fill this newbie in! TIA

 

[Sandisw]

My current purchase is the first time I have held the funds. Most often sent right away.

I think the only benefit to holding is if the seller delays, then you have control of the funds until you know it’s ready to close.

For me, I’m glad I waited because there is something going on with my seller as we are almost one month since he got papers.

If I end up needing to cancel the sale, I at least only have the deposit tied up. Never knew we could wait but if it were me, I would.

 

[HappyThoughtsTees]

Your money isn't at risk if you send it with your closing docs. The issue is the seller may take longer (in some cases MUCH longer) to return their docs and people would rather have their money in their account vs the title company.

 

[sndral]

I’ve always (3X) wired the money as soon as I signed & returned the closing doc.s just because I wanted to do everything I could to get it closed ASAP, because by the time we got to closing I was so eager for those points. That said, next time I may wait till I have confirmation that the seller’s doc.s have been received since it is a bit frustrating to have all that money sitting there in escrow & slow sellers.
W/ interest on savings at basically zero, the purchase funds sitting in my account an extra week or three would net literally pennies.

 

[Rush]

2 time resell buyer, both times I sent it as soon as we signed our docs. The second one the seller took several weeks to sign. That was enough to turn me into a wait until they’ve signed kind of buyer. Just passed ROFR on #3, between Disney’s estoppel delays, the DVC shutdown, and our previous experience, we will be sending it as pretty much the last thing they need to close.

 

[kilik64]

We wired when we found out the seller had returned their docs. I wouldnt personally wire until then. If you wire with your docs, title company is just holding your money until the seller returns theirs and what if the seller decides to back out for whatever reason? gotta get the money wired back, and depending on institution, could be a charge to get a wire.

I dont think it delays or hurts anything to wait for the confirmation that seller returned their paperwork, long as you wire prior to the closing date I think you are good.

 

[J Spaziani]

Had my paperwork ready to go and waited for confirmation seller was complete. Went to the bank and grabbed a check, sent it off with the papers. They had everything on their desk within 48 hours of sending me seller confirmation. Not sure the advantage of a wire when you have to send back documents anyways.

 

[T-i-double-guh-er]

Not sure the advantage of a wire when you have to send back documents anyways.

For me, it was mostly convenience. I can wire money from my phone or computer at home, while a cashiers check would have required a trip to the bank. Also, we could send the papers back ahead of the funds, so once all the seller's documents are there the money can be wired and in their account the same day instead of 2 days later.

 

[Rush]

Had my paperwork ready to go and waited for confirmation seller was complete. Went to the bank and grabbed a check, sent it off with the papers. They had everything on their desk within 48 hours of sending me seller confirmation. Not sure the advantage of a wire when you have to send back documents anyways.

I agree, although many of the brokers are using DocuSign for closing documents, so everything can be signed digitally. Even still though, I’ve always used the provided Fedex overnight for final payment, and intend to do so this time as well.

 

[kilik64]

Our side of docs were through docusign, didn’t require a notary to buy just for the sellers so they had to mail theirs in, they signed same day we got the docs but took a week for mail to get to title company.

 

[macman123]

I have always wired when they have closing docs from seller and a week before closing.....

 

[RoseGold]

I've worked with multiple title companies, and the title agent will confirm when the seller returns paperwork. I have it wired within hours and closed that day.

Too many stories of sellers monkeying around and taking a while to get the money back. It doesn't happen often, but it does happen.

I've done multiple buys in the last few years and didn't have to return any physical paperwork, though I believe this can vary by state/financing requirements.

 

[natty650]

Thanks everyone! Initially, I planned to wire funds when I submitted closing docs, but it makes a lot of sense to hold off and that's what I'll plan to do.

This is definitely the most helpful forum I've joined. THANK YOU!

 

[Twiggy1953]

I wish we’d held off sending our funds. We sent them as a international buyer over two weeks ago and we’re still waiting on the Sellers returning their documents. If they decide to bail (hopefully they won’t) we will lose a lot on the exchange back to £s. Oh well we’ll know for next time.

 

[Jaydee51]

I send the wire when the title company confirms the seller has executed all documents

 

[LadybugsMum]

FIrst resale contract: I wired the funds the same day I sent off the notarized documents. For my second, I plan on waiting until I get confirmation that the sellers have returned their documents.

 

[benedib99]

My current purchase is the first time I have held the funds. Most often sent right away.

I think the only benefit to holding is if the seller delays, then you have control of the funds until you know it’s ready to close.

For me, I’m glad I waited because there is something going on with my seller as we are almost one month since he got papers.

If I end up needing to cancel the sale, I at least only have the deposit tied up. Never knew we could wait but if it were me, I would.

Sandisw - I WISH I had followed your guidance on my last purchase!! I have always sent the funds as soon as I received the closing package. I have two contracts right now where the seller hasn't gotten the documents notarized and the title company is sitting on my funds. They said the seller is going to TRY and get the documents notarized August 1st!!!

Going forward, I'm going to do as you said, and wait to send funds until the seller's closing docs are finalized.

 

[benedib99]

I agree, although many of the brokers are using DocuSign for closing documents, so everything can be signed digitally. Even still though, I’ve always used the provided Fedex overnight for final payment, and intend to do so this time as well.

I agree, most of the brokers are paperless for buyers now. I usually use Mason Title, and they will always provide you with a FedEx label at no additional cost, IF you ask for it. With my bank, given the cost of a wire, an $8 bank check is a no-brainer since there is no additional shipping fee. Mason isn't cheap of course, so I won't ever say the FedEx is 'free' it's just already included in the cost of doing business.