Wire funds before seller signs?

[NY Pirate Princess]

We waited nearly a full month after ROFR for closing documents. We received the email yesterday from the title company and returned today. I wrote in the body of the email that I would like to know when the seller signs. Once I am told the sellers have signed I will go to the bank immediately and wire the funds sitting there. My drop dead date is August 2 and I leave for vacation before that.

I waited a few hours and called the title company, but the person who has my case is on vacation. The person who sent the documents doesn't have a phone number. I called the contact at the brokers office, and this person was very insistent that I wire the funds immediately. There is no reason to delay. Sellers never back out. He can't promise me that anyone will be able to notify me when the sellers complete the paperwork. I should just go ahead and send it right away. If anything happens I will get a refund. I might not meet my contractual deadline if I don't send the money. The seller might not sign the documents if the money isn't paid because they don't think we will follow through. That one really irked me. Pretty sure the seller is as irritated as I am.

This feels gross.

I made it clear I have no intention of backing out, but I will not send money until the contract is signed by the other party.

Am I making myself stressed and aggravated for no reason? Should I just go wire the funds tomorrow and be done with it? It feels like the balance of my contract is my only leverage to get someone to talk to me. However, if I am overreacting and being silly I want to hear it.

 

[KStocker]

We waited nearly a full month after ROFR for closing documents. We received the email yesterday from the title company and returned today. I wrote in the body of the email that I would like to know when the seller signs. Once I am told the sellers have signed I will go to the bank immediately and wire the funds sitting there. My drop dead date is August 2 and I leave for vacation before that.

I waited a few hours and called the title company, but the person who has my case is on vacation. The person who sent the documents doesn't have a phone number. I called the contact at the brokers office, and this person was very insistent that I wire the funds immediately. There is no reason to delay. Sellers never back out. He can't promise me that anyone will be able to notify me when the sellers complete the paperwork. I should just go ahead and send it right away. If anything happens I will get a refund. I might not meet my contractual deadline if I don't send the money. The seller might not sign the documents if the money isn't paid because they don't think we will follow through. That one really irked me. Pretty sure the seller is as irritated as I am.

This feels gross.

I made it clear I have no intention of backing out, but I will not send money until the contract is signed by the other party.

Am I making myself stressed and aggravated for no reason? Should I just go wire the funds tomorrow and be done with it? It feels like the balance of my contract is my only leverage to get someone to talk to me. However, if I am overreacting and being silly I want to hear it.

I have seen, in other posts, where people wait until the seller returns their paperwork before the funds are sent. I, actually, wish I had done that. I returned my paperwork and funds 2 1/2 weeks ago. I contacted the title company today to find out if the seller has returned their paperwork. They have not. Our close date is 7/25. I don't understand the hold up, as the sellers reached out to me (thru the broker) after I declined their counter offer a month before they reached back out.

 

[Sandisw]

There are definitely people who do not wire the money right away and I did that on my last contract. My seller was slow ans after three weeks. I threatened to walk, ans things got done and I sent money.

I certainly would not stress because with the contract signed, and delivered back to them, you can’t back out, funds or no funds…i would just keep checking and when it gets to a point where you are close to contract closing date or go on vacation, then I might send it.

 

[NY Pirate Princess]

I have seen, in other posts, where people wait until the seller returns their paperwork before the funds are sent. I, actually, wish I had done that. I returned my paperwork and funds 2 1/2 weeks ago. I contacted the title company today to find out if the seller has returned their paperwork. They have not. Our close date is 7/25. I don't understand the hold up, as the sellers reached out to me (thru the broker) after I declined their counter offer a month before they reached back out.

Thank you for sharing your experience.

 

[NY Pirate Princess]

There are definitely people who do not wire the money right away and I did that on my last contract. My seller was slow ans after three weeks. I threatened to walk, ans things got done and I sent money.

I certainly would not stress because with the contract signed, and delivered back to them, you can’t back out, funds or no funds…i would just keep checking and when it gets to a point where you are close to contract closing date or go on vacation, then I might send it.

I don't want to back out at all. We are so excited to finally be DVC owners after years of waiting. I've learned a lot, so I appreciate the hurdles. You laid out what I had planned to do, and I think that works. I'll hold off until just before we leave and wire the funds at that point if no one can confirm the seller has signed.

What happens if the sellers haven't signed by August 2? Do I have the option of cancelling and starting over at that point?

 

[Sandisw]

I don't want to back out at all. We are so excited to finally be DVC owners after years of waiting. I've learned a lot, so I appreciate the hurdles. You laid out what I had planned to do, and I think that works. I'll hold off until just before we leave and wire the funds at that point if no one can confirm the seller has signed.

What happens if the sellers haven't signed by August 2? Do I have the option of cancelling and starting over at that point?

If the close date of your contract is Aug 2nd, yes, you can back out and get funds back. What I might do a few days before you leave is let them know that if things don’t close on time, you might exercise your right to cancel.

It can be a pretty big motivator for a seller who is taking their time for no real good reason.

 

[DanCali]

I certainly would not stress because with the contract signed, and delivered back to them, you can’t back out, funds or no funds…

Technically, until you send the funds, couldn't you still back out (at the cost of the deposit)? That would probably just trigger the buyer default clauses, but they can't force you to close the deal if you don't want to at that point.

 

[Sandisw]

Technically, until you send the funds, couldn't you still back out (at the cost of the deposit)? That would probably just trigger the buyer default clauses, but they can't force you to close the deal if you don't want to at that point.

Yes, technically, but once signed, you have put yourself in a situation where someone might want to go after you…I am sure not likely..

It was more to say in response to a broker saying if you don’t send funds you might back out when the signed document certainly carries the weight of intent more than the funds.

 

[Brian Noble]

It feels like the balance of my contract is my only leverage to get someone to talk to me.

They aren't talking to you now, so nothing will change if you wire the funds.

August 2 is only 2-3 weeks from now. If it were me, I'd send it so I don't have to worry about missing the call, how it interacts with my vacation etc. etc. etc. If worse comes to worst, you'll get it back.

 

[sndral]

We waited nearly a full month after ROFR for closing documents. We received the email yesterday from the title company and returned today. I wrote in the body of the email that I would like to know when the seller signs. Once I am told the sellers have signed I will go to the bank immediately and wire the funds sitting there. My drop dead date is August 2 and I leave for vacation before that.

I waited a few hours and called the title company, but the person who has my case is on vacation. The person who sent the documents doesn't have a phone number. I called the contact at the brokers office, and this person was very insistent that I wire the funds immediately. There is no reason to delay. Sellers never back out. He can't promise me that anyone will be able to notify me when the sellers complete the paperwork. I should just go ahead and send it right away. If anything happens I will get a refund. I might not meet my contractual deadline if I don't send the money. The seller might not sign the documents if the money isn't paid because they don't think we will follow through. That one really irked me. Pretty sure the seller is as irritated as I am.

This feels gross.

I made it clear I have no intention of backing out, but I will not send money until the contract is signed by the other party.

Am I making myself stressed and aggravated for no reason? Should I just go wire the funds tomorrow and be done with it? It feels like the balance of my contract is my only leverage to get someone to talk to me. However, if I am overreacting and being silly I want to hear it.

No, you are not over reacting or being unreasonable. You have signed your documents & are waiting for the sellers to sign theirs. Once they have done so you will pay the fee required to wire the funds & close the sale. It’s a pretty straightforward way to complete the closing. I assume that you as the buyer are the one paying the closing costs which includes the fee the title company earns for handling the closing, if they can’t handle notifying you that all necessary documents from both parties have been received & that you need to wire them the funds, then they need to find another line of work! Oh, and the person at the broker’s office flat out lied, sellers do back out - it’s rare - but it happens.
That said, I‘ve always wired my funds when I signed the documents just because I didn’t want anything on my end slowing things down.

 

[RuntheMouse]

I wired the funds immediately after signing closing docs on all 4 of my resale purchases, 3 different brokers/title companies.

I get why people hold the funds but I didn’t want to be the hold up or added stress. Do what you are most comfortable with.

 

[pianomanzano]

I wired the funds immediately after signing closing docs on all 4 of my resale purchases, 3 different brokers/title companies.

I get why people hold the funds but I didn’t want to be the hold up or added stress. Do what you are most comfortable with.

Just curious, what added stress is there? After having a slow seller on my first resale contract, I always wait until sellers return docs to transfer. Just keep the money in a HYSA and let the money work for you if a seller is dragging their feet. You can earn a couple hundred bucks in just a month's time.

 

[RuntheMouse]

Just curious, what added stress is there? After having a slow seller on my first resale contract, I always wait until sellers return docs to transfer. Just keep the money in a HYSA and let the money work for you if a seller is dragging their feet. You can earn a couple hundred bucks in just a month's time.

This process is so long to begin with, I just wanted everything on my end wrapped up. I didn’t want to be the hold up. After I send the money, I get to go about living life, not waiting for the next step.

Like I said, everyone has to do what’s right for them.

 

[varyth]

After my one experience with Magic Vacation Title being slow with providing closing docs + very slow sellers, I now always state that I will only wire the remaining funds after the sellers have completed their closing docs. Haven't had any pushback doing this when using Mason, thankfully.

However, if you won't be able to wire funds while on vacation and that spans the closing date, I would have it done before leaving just to be sure that isn't the outstanding item that causes you to miss closing.

 

[DonMacGregor]

Just curious, what added stress is there? After having a slow seller on my first resale contract, I always wait until sellers return docs to transfer. Just keep the money in a HYSA and let the money work for you if a seller is dragging their feet. You can earn a couple hundred bucks in just a month's time.

In all 9 of my resale contracts, I sent the money right away. It's not a "stress" issue, it's more of a "get it done and not have something else to do later" added to "I'd rather not be the one dragging things out any longer" issue. Even in a perfect situation, it can take 2 days to wire (usually 24 hours minimum), and it it's the end of the week, now you might be talking about initiating the transfer on a Wednesday, and not seeing the deal fund until the next Monday or Tuesday.

The money isn't going to disappear: licensed title agents are required by law to hold funds in an escrow account until all parties sign the papers, so it may as well be in their bank as mine. As far as a HYSA goes, how much is it really going to matter? $50k in a 4.5% daily compounding account is going to earn you what, $85 if it stays in your bank an extra 2 weeks? Even twice that amount isn't worth me trying to flex on someone by holding back the funds.

 

[DonMacGregor]

However, if you won't be able to wire funds while on vacation and that spans the closing date, I would have it done before leaving just to be sure that isn't the outstanding item that causes you to miss closing.

Plus, most financial institutions require a 24 hour waiting period for wire transfers and the transfer itself might end up taking 48 hours to process. Initiate a transfer on a Wednesday afternoon, and the deal might not actually fund until the following Monday or Tuesday (the money may end up in the title agent's escrow account on Friday, but they may not move on it over the weekend) and the deal may not close until that following Wednesday, adding an entire week to the process.

 

[StoweFoSho]

In all 9 of my resale contracts, I sent the money right away. It's not a "stress" issue, it's more of a "get it done and not have something else to do later" added to "I'd rather not be the one dragging things out any longer" issue. Even in a perfect situation, it can take 2 days to wire (usually 24 hours minimum), and it it's the end of the week, now you might be talking about initiating the transfer on a Wednesday, and not seeing the deal fund until the next Monday or Tuesday.

The money isn't going to disappear: licensed title agents are required by law to hold funds in an escrow account until all parties sign the papers, so it may as well be in their bank as mine. As far as a HYSA goes, how much is it really going to matter? $50k in a 4.5% daily compounding account is going to earn you what, $85 if it stays in your bank an extra 2 weeks? Even twice that amount isn't worth me trying to flex on someone by holding back the funds.

I agree. I have always sent funds when I send documents. Currently waiting on the seller to return notarized closing documents on our 4th contract, but after reaching out to the title company and the broker, the seller is supposed to take care of things this week. My last purchase also was quick until it was time for the seller to get something notarized. I imagine 99% of sellers are returning docs after the buyer due to the notarization requirements.

I kinda wish the resale brokers and title companies would start recommending sellers to some remote online notaries like DVD does for direct purchases. (I know it’s not available in every state). It would probably speed things up significantly, so sellers aren’t having to go track down an in-person notary.

Anyways, I’ve always felt if I do my part first, then we can close as soon as the sellers return docs and not have to wait for funding.

While it’s a longer process, I just keep telling myself I’m saving thousands by going resale.

 

[pianomanzano]

In all 9 of my resale contracts, I sent the money right away. It's not a "stress" issue, it's more of a "get it done and not have something else to do later" added to "I'd rather not be the one dragging things out any longer" issue. Even in a perfect situation, it can take 2 days to wire (usually 24 hours minimum), and it it's the end of the week, now you might be talking about initiating the transfer on a Wednesday, and not seeing the deal fund until the next Monday or Tuesday.

The money isn't going to disappear: licensed title agents are required by law to hold funds in an escrow account until all parties sign the papers, so it may as well be in their bank as mine. As far as a HYSA goes, how much is it really going to matter? $50k in a 4.5% daily compounding account is going to earn you what, $85 if it stays in your bank an extra 2 weeks? Even twice that amount isn't worth me trying to flex on someone by holding back the funds.

It's not flexing, if there's an opportunity to earn free money for no effort at all why not do it? $80 will pay for a day's worth of snacking at Food & Wine. And I'm not holding back funds, it takes no more than 5 minutes to do a wire transfer online and the money gets to the title company the same day they notify me of when they receive the seller's docs.

 

[Brian Noble]

It's not a "stress" issue, it's more of a "get it done and not have something else to do later"

One of my mentors calls this the OHIO strategy: Only Handle It Once.

 

[DonMacGregor]

It's not flexing, if there's an opportunity to earn free money for no effort at all why not do it? $80 will pay for a day's worth of snacking at Food & Wine. And I'm not holding back funds, it takes no more than 5 minutes to do a wire transfer online and the money gets to the title company the same day they notify me of when they receive the seller's docs.

There are a lot of people who think holding back the funds is exerting pressure on the sellers and agents, and somehow implies that they are "in control". I guess $80 just doesn't rock my boat as much as being done and dusted with something, moving on, and letting someone else have it buzzing in the back of their mind. And in 9 resale contracts, I've never had to wait on any seller more than a handful of days, so those 80 smackers would be more like 80 cents.