Keller Williams Realty Atlanta – Peachtree Road

Real Estate Legal Tip

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Why Closing Attorneys Need Wired Funds for Closing

In the “old days”, lenders sent regular checks and buyers wrote personal checks at closings.  Sometimes lenders did not even provide the check until after closing!
 
In the early 1990’s, Georgia passed the Good Funds Law to provide that all funds over $5,000 from buyers and sellers brought to closing must be in the form of cash, cashier’s check, or wire.  Lenders could still send their own checks, but they could not wait to fund after the closing.
 
In 2007, checks from major lenders started bouncing, and the funding process changed.  Title companies recommended that closing attorneys require wired funds for all lender funds and even funds coming from other closing attorneys.
 
Cashier’s checks can be stopped by a “lost or stolen” affidavit.  There have been many reports of stolen blank cashier’s checks and even counterfeit cashier’s checks. 
 
In addition, a deposited cashier’s check is treated just like a personal check;  it is not considered “cleared funds” for several days.
 
Closing attorneys are being asked to send wired funds for most payoffs, so they can not wait for the cashier’s checks to “clear”.
 
Commercial closings have always required wired funds, and this is the best way to protect the buyers, lenders, sellers, and closing attorneys for residential closings also.

More Legal Tips From Neel & Robinson:

 The Buyer Should Do Repairs Whenever Possible, Not The Seller

 Watch Language in Short Sale Letters

Flood Insurance Is Not Always Available

Make Sure You Know Who Owns The Property!

Quit Claim Deeds & Owner Title Insurance 

Choosing A Settlement Agent When Buying A Fannie Mae Property

KW Atlanta Legal Tip: Georgia 2010 Filing Deadlines Coming Soon!

Due Diligence When Buying a Condo, Townhome or In a Planned Community

 Try To Avoid Credits & Allowances!

Special Issues with Buying/Selling Condominiums

 First-Time Home Buyer’s Tax Credit – Don’t Wait Till The Last Minute!

 Buying Property From The Bank: Tips For Buyers

Waiting Periods Required Under New Truth in Lending Law

  Termite Letters – Still a Good Idea

 
 
 
Presented by Leigh Clack, Attorney
Neel & Robinson Attorneys at Law, LLC
22 Lenox Pointe, Atlanta, GA 30324
404-705-3690        fax  404-705-3697
lenox@neelandrobinson.com

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This entry was posted on Monday, June 14th, 2010 at 9:22 am and is filed under Legal Tips By Neel & Robinson. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.