Why Wire Funds from the Sale Escrow to the Purchase Escrow?

By
Real Estate Agent with Sunset Properties, Powered by Movoto DRE #01485322

 Can Funds be Wired Between Escrow Companies? 

 Why is it a Good Idea?

 

Did you know that some banks require that wired funds stay in the account for 24 hours before they can be wired back out?  How can this affect your timeline when coordinating the sale of  one home and the purchase of another?  Real estate works off of calendar days, so the impact on timing can be significant.

 

Suppose the seller's proceeds are wired into their account and arrive on a Friday.  They may have to wait until Monday to wire funds and depending on the time of  day the wire is initiated, funds may not arrive until Tuesday.  Valuable days can be lost.

 

All of that can be avoided if the escrow companies are authorized and instructed by the client to carry out their instructions to wire some or all of the proceeds from the sale escrow to the purchase escrow.  

 

If the client is moving out of the area and the listing doesn't have any involvement in the purchase, I think it is still the agent's responsibility to let their client know funds can be wired from one escrow to the other.  

 

It is a convenience that clients simply do not know is available to them.  Why not make things easy on your clients?  A move is stressful enough and anything that can streamline even one thing can be exceptionally helpful.

 

It is often said that the small things really are the big things and it's true.

 

🌻

Interested in buying or selling your Orange County, CA home?

Contact me today to get started!

JILL MURTY | 949.355.5321

 

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Comments (11)

Mike Rock
Complete Design - Granite Bay, CA
Granite Bay Luxury New Construction...For Less

so true. the details can be so important. its the experience that the sage'd ole agents have that the new ones dont. and... the new ones typically dont get the attention they need from the broker. thanks for the heads up.

Aug 13, 2015 07:57 AM
Chris Ann Cleland
Long and Foster REALTORS®, Gainesville, VA - Bristow, VA
Associate Broker, Bristow, VA

Wiring between title companies is always the best idea if a buyer has to have proceeds from the sale of their home to purchase the next.

Aug 13, 2015 08:09 AM
Nicole Doty - Gilbert Real Estate Expert
Zion Realty - Gilbert, AZ
Broker/Owner of Zion Realty ZionRealtyAZ.com

I learned that lesson the hard way many years ago. Not personally but I've had transactions be affected because of this scenario!

Aug 13, 2015 09:08 AM
Frank Rubi
Frank Rubi Real Estate, LLC - Metairie, LA
FrankRubiRealEstate.com

Good point you bring out about wired funds. I prefer the funds to be wire by closing companies when possible. 

Aug 13, 2015 10:06 AM
Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

Tomorrow there is a closing in another state, we obviously are not involved in that, but the seller at the closing will be buying in our area soon.  We had this very conversation.... of course no title company in Georgia, but an attorney's office instead.

Aug 13, 2015 12:44 PM
Jill Murty, Realtor - Orange County, CA
Sunset Properties, Powered by Movoto - Laguna Niguel, CA

MIKE ROCK - Dude....I think you just called me old... 😜

Chris Ann Cleland - I agree!

Nicole Doty - Gilbert Real Estate Expert - It's a bummer when transactions are adversely affected when it doesn't have to be that way.

Frank Rubi, MBA - Wire is the best way to go.

Tammy Lankford - Good that you had the conversation.  More proof to your client that they're in good hands.

Aug 13, 2015 01:42 PM
Mike Rock
Complete Design - Granite Bay, CA
Granite Bay Luxury New Construction...For Less

ahhhhhhhhhhhhhhhhhhhhhhhhhhhh, no maam! :)

Aug 13, 2015 01:43 PM
Jill Murty, Realtor - Orange County, CA
Sunset Properties, Powered by Movoto - Laguna Niguel, CA

MIKE ROCK - In some parts of the country, California for example, ma'am is another word for calling a woman old.  You knew that, right?!  😜

Aug 13, 2015 01:53 PM
Mike Rock
Complete Design - Granite Bay, CA
Granite Bay Luxury New Construction...For Less

im in cali..and yes.... Mrs Murty (kinda like Mrs Cleaver , beavers mom...but your not old enough to know who that is ) ....i do know that, but..... you sooo perrrty.. me fig i get away wit it :). seriously..it was a good tip.. and heres one i found out today... the HOA communities are screwing us, figuratively with the process fees on opening escrow. we are seeing 500 to 700 to 1000 dollars for them. a buddy of mine works at a HOA and i guess  that how they make their money. :)

Aug 13, 2015 02:02 PM
Mike Rock
Complete Design - Granite Bay, CA
Granite Bay Luxury New Construction...For Less

you knew that , as im sure they have high fees in so cal. what we are doing on this one we got into this week, is just get a verification from the hoa, and giving them all the current docs, and having sign off. the hoa doesnt like it, but they cant do much. and they are charging for 190 just for that :). oh well..

Aug 13, 2015 02:13 PM
Jill Murty, Realtor - Orange County, CA
Sunset Properties, Powered by Movoto - Laguna Niguel, CA

Yeah, totally old enough to know who Ward, June, Wally, the Beaver, Eddie Haskell and the whole gang are.  You channeled Eddie in a couple of sentences....

I hope the wiring tip comes in handy.  It can really help.

HOA management companies are pretty much wh0re$ with those fees.  That the "normal" processing time is intentionally so long that you almost have to pay a rush fee so your contingency period isn't blown is ridiculous.

Here's another tip: the buyer has 5 days to review reports (like HOA docs) owed to them by the seller regardless of the contingency period.  If the buyer receives the HOA info the day contingencies are scheduled to be removed, the contingency period for that items has just been extended by 5 days.

Aug 13, 2015 02:16 PM

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