Knowing when does seller get money after closing is a question most homeowners ask themselves after the closing, though timing depends on several factors including contingency resolution timeframes, home inspection results and contract terms.
Buyers typically make an earnest payment to demonstrate their intent of purchasing the property they’ve seen advertised for sale. Once this transaction has concluded, both parties sign the closing documents that include a settlement statement.
Closing date
Closing is a key step of home buying, and its timing depends on numerous factors. Most sellers will receive their funds via wire transfer or paper check; however, timeframes vary by state and situation. Real estate professionals should work with both their client and closing agent to suggest an ideal date that allows enough time for completion of all closing steps without delays resulting in costly errors.
On closing day, both buyers and sellers will meet with an attorney or title company representative to sign all necessary paperwork for the sale of their home. It’s essential that sellers understand all documents they are signing; typically this involves signing over deed rights as well. Furthermore, sellers should bring ID as well as all keys/access codes necessary for access to their property on this date.
Depositing the check
Closing is a critical step in selling any property. It involves resolving contingencies, home inspections, and any other issues that might delay or stop the transaction from moving forward; otherwise, funds due from buyers could remain stuck with sellers instead of reaching them on time.
Home sales close when all parties sign the final documents and exchange funds into escrow. After this is complete, an escrow holder then disburses these funds via check or wire transfer – each method taking time to process.
When depositing a check, be sure to endorse it properly so the bank knows who the money is intended for. Writing an additional note below your signature may also help. If unsure how to endorse the check properly, seek assistance from either your teller or banker; otherwise give the envelope to a postal worker as they could also help if need be.
Wire transfer
Wire transfer is one of several options available to sellers for receiving their sale proceeds, but by far the easiest and most secure means. This electronic payment allows funds to be sent directly into a bank account domestically or internationally.
There may be additional paperwork involved with this option; however, the escrow company should provide this documentation upon closing as well as inform you of any fees that apply to your transfer.
Wire transfers should arrive one to four days post-closing; if you live in a dry funding state, this process could take slightly longer – consult your real estate agent or escrow officer for details about its specific funding process. A wire transfer offers greater safety than receiving checks which could expose them to fraud.
Cashing the check
There are two methods for receiving payment from a home sale. Either you can receive your funds as a check, or they will be wired directly into your bank account – with the latter method generally preferred as it’s faster and safer – though please keep in mind it can take between 24-48 hours for it all to appear there.
Closings typically involve fees from third-party services such as escrow and title companies, real estate agents and attorneys as well as closing costs that must be covered by the seller before their profits can be collected.
How quickly your proceeds arrive depends on whether the buyer pays in cash or mortgage-financed and whether your state offers wet or dry funding options. In wet funding states, funds typically arrive on or shortly after closing date or day following.
