Yes they will put a hold on that check!

I often wonder just how much "free" interest is being made by whom, when money floats for a while.  Like someone above mentions... she writes a check and the money is gone that night from her account, yet it doesn't seem to appear in the payee's account for a day or two or ten. 

In our little county, if the certified check didn't come from a local bank (as in the actual same town as the title company), it isn't considered collected.  They don't take cash, either.  When I do a cash deal, I don't even bother with earnest money (no Oregon law says you have to have it), and have my buyers pay everything at closing via a wire transfer.  They put their cash in their own account as of release of any contingencies, that way everything is already "collected" and ready to be wired to escrow at the right time.

Before your eyes pop out at that, most of these cash deals are for inexpensive building lots, although I did have to deal with the guy that counted out $48K in cash, $100 bills, on my desk one day.  That was an interesting process...

And yet when my clients went to consolidate funds in advance of closing so they could have them all in one place and ready to wire transfer the lender had a fit and we spent 2 weeks documenting the source of the funds to get the loan back on track.  My advise have it all together before you get the loan and then Wire Transfer it to escrow.

Great reminder! On our far away island recording (aka closing) also happens a few days after the signing & we always make sure that funds are wired instead of having  checks written. Aloha!

Yes - and if they are Canadian make sure to tell them to add the fees charged in this country for the wire, otherwise, it holds up closing as well.  This is usually a $15 charge!

Jim,

Great point!  And, when buyers say they have cash- bank wants them to prove it instead of using it as mattress stuffing.

Jim.. It is amazing how some people forget this point.  That is why I get deposit checks up front, and if more funds are need I *stress* this point so they will remember.  Great post, thanks for sharing.

Good reminder! Right up there with don't apply for a new car loan while you are in the middle of escrow!

Essential information Jim thanks for the reminder and thanks for Ray's comment.  Margaret C.

This is good advice and this does tend to trip up transactions occasionally.

This is an old post but still totally valid!

Very important information, Jim. Thanks for sharing!