Sold Home - Check For Home Not Clearing

[taratristit]

What is the name of your state? NY


Selling my home. I am really concerned w/only one thing: the main payout check clearing. Could a seller received a check that was not cashable for some reason - And then all of a sudden have no home & no money either, & have someone living in the home & even worse yet having legal title/ownership in someone else’s name? How would one word a contact or an addendum to a contract to protect them self from any such mishap as to the check for the home not clearing?
Thank You

[nextwife]

NY closings are similar to WI. They table fund.

The seller funds are normally passed through a closing agent, like a title company. The disbursing agent ONLY accepts "good funds". Personal funds are not acceptable. Buyer funds are usually either wired or a certified check. The lender portion is also usually WIRED funds. If you have your closing properly done, through a third party closing agent/title company, there should be nothing to worry about as to your proceeds check being "good"..

[HomeGuru]

I agree with Nexie. Writer did not state if escrow or closing attorney will be used.

[nextwife]

Originally Posted by HomeGuru

I agree with Nexie. Writer did not state if escrow or closing attorney will be used.

Exactly. Which is why I stated that IF he has it done PROPERLY, through a third party closing agent like a title insurance company, he needn't worry about a "bad check". If he WAS trying to save a sous or two () by trying to manage this as a DIY process, hopefully he'll rethink that approach.

[You Are Guilty]

Even absent use of a third party, no sellers attorney in their right mind would accept a personal check. (And any seller who doesn't use an attorney is not in their right mind ).

[CraigFL]

With so many counterfeit bank checks out there, it is possible he's asking because of that?