Can I bring my funds in cash? Can I pay the balance with my credit card?
The simple answer? No.
There are a few ways that payment can be made. However, with an array of fraud on our door steps, some companies have tailored what will be accepted at closing. Even more so since the most current Florida Realtors/Florida Bar-1 2010 contract has some new clauses that specify what can happen if certain payment methods are used.
What Form of Payment Is Accepted
Typically an escrow deposit (or earnest money) is made and will be accepted in the form of a personal check. This is acceptable since there is usually plenty of time from when the check is deposited to the closing date so that the check has time to clear the bank.
The two normal methods of payment at a title company are a wire transfer and a cashier’s check, which is sometimes called a bank check. These are funds that are generally considered immediate. When a closing happens, the seller’s proceeds and the payments to be made have to be able to be disbursed on available and collected funds.
What the Contract States About Funds
Page 1, line 25; it states in regards to initial deposit…
(checks subject to COLLECTION)
Page 1, lines 37-38; in regards to balance to close it states…
by wire transfer or other COLLECTED funds
Furthermore line 39 then reads…
NOTE: For the definition of “COLLECTION” or “COLLECTED” see STANDARD S.
On page 10 you will find the STANDARD S clause on lines 547-550…
COLLECTION or COLLECTED: “COLLECTION” or “COLLECTED” means any checks tendered or received, including Deposits, have become actually and finally collected and deposited in the account of Escrow Agent or Closing Agent. Closing and disbursement of funds and delivery of Closing documents may be delayed by Closing Agent until such amounts have been COLLECTED in Closing Agent’s accounts.
More importantly, know and realize that there are laws that pertain to “good funds.” We just don’t make this up.
At Title Junction we care about helping you stay informed throughout your real estate transaction. Have questions? Give us a call at 239.415.6574.
In case you missed it, check out our last Title Junction post: Refinancing? Yes…You Need Title Insurance