Title Companies in Utah must have “Good Funds” before they can record and disburse on a real estate transaction. So, what are good funds? It is money that has been received into the title company’s account that has been collected and cleared.
The issue at hand with good funds is the time it takes for the funds to be considered, “collected and cleared”. Most buyers and sellers are anxious to close the transaction and either move in (buyer) or receive their seller proceeds $money$ (seller). A title company cannot record the deeds before they’ve received and cleared funds because they must verify that those funds and in their account so that they can “disburse funds”, meaning they can pay all the parties in the transaction who are due to be paid.
So, what is the best way to smoothly and quickly close and fund? WIRES! When a title company receives funds via wire those funds are “good funds” immediately. The next best option is a cashier’s check, but this must be deposited into the account and sit overnight. Also, any amount over $10,000 MUST be wired.
So…wiring funds is best. It’s the quickest and safest way to handle the real estate closing & funding process. Be sure to ask your title company for their wiring instructions prior to closing and verify that information to avoid any delays at the closing or at time of funding.
We hope you find this Title Tip helpful and we look forward to helping you on your next transaction!