Issuance of Paper Checks at Closing

With recent technological advances, many banks now offer their customers the ability to deposit checks using their smart phones. One can now simply take a picture of a check using a smart phone and  instantly deposit it into their bank account. While this is certainly a convenient feature, it has created quite a challenge with respect to the issuance of checks at closing. The reason being is that once a check is provided to a party, the closing agent is now forced to assume that the check was immediately deposited upon delivery.

In fact, two recent examples underscore the problem.  The first, involved a seller who initially requested and received a paper check; after the seller left the office, they decided that they preferred their funds to be wired. The second involved a realtor who decided (after a paper check was issued to the broker) that the commission check needed to be split between the agent and the broker.  In both cases, the paper check had been issued and left the sight of the closing agent, thus forcing the closing agent to assume that the check may have been deposited.  In each case, the closing agent was unable to honor the request.

To avoid these issues, it is even more imperative for the parties to confirm how they want their funds provided to them in advance.  Remember that once a paper check is issued and provided to a party, it cannot be reissued unless one is willing to wait ten days for a stop payment. The closing agent will now be forced to assume that the check could have been deposited.

As always, should you have any questions in regards to the foregoing, please consult with your local real estate attorney.

Sincerely,

Berlin-Patten, PLLC

This communication is not intended to establish an attorney client relationship, and to the extent anything contained herein could be construed as legal advice or guidance, you are strongly encouraged to consult with your own attorney before relying upon any information contained herein.

All rights reserved. This copyrighted material may not be re-published without permission. Links are encouraged.

www.berlinpatten.com 

SARASOTA

3700 S. Tamiami Tr, Suite 200, Sarasota, FL 34236   P (941) 954-9991  F (941) 954-9992

VENICE

100 W. Venice Avenue, Suite A, Venice, FL 34285  P (941) 955-9991  F (941) 953-9992

LAKEWOOD RANCH

8130 Main Street, Suite 206, Lakewood Ranch, FL 34202   P (941) 907-9022  F (941) 907-9024  

Did you find this real estate law content useful, but need actual legal counsel?

Speak to a real estate attorney!

, ,

Runaway Buyers: Seller’s Options When Left Alone at the Closing Table

What happens when a buyer leaves a seller at the closing table and it is not related to unforeseeable circumstances? In Florida, the FAR/BAR contracts are the mainstream residential transactional sale agreements and they generally provide the parties with a reasonable expectation of their rights and remedies upon a buyer or seller default. When Johnny…

Time (Of The Essence) Is On My Side, Yes It Is…

Contracts are full of language that may seem unimportant, boilerplate, confusing, or just plain useless. Real estate contracts are no different. The standard FAR/Bar forms for sale and purchase of residential property, “AS IS” contracts, and even vacant land contracts all contain provisions that you see all the time, but rarely have to really address.…

Your COVID-19 Closing Related Questions, answered by Berlin Patten Ebling

We know you are all tired of receiving COVID-19 related bulletins, but due to the flood of questions we have received on the topic, we felt that this would be a useful and timely topic. This Q&A will answer some of the most common questions we have received over the last few days. We will…

Coronavirus (COVID-19): Is your closing at risk?

The team at Berlin Patten Ebling, PLLC is extremely sensitive to the impacts of the coronavirus (COVID-19). The effects of COVID-19 have prevented or delayed performance across virtually all sectors. Fortunately, we have yet to see very little impact to the local real estate industry and we are still seeing robust market activity, great attendance…

Look Out for Double Dipping Closing Agents!

Some closing agents are getting greedy and charging closing fees to both, the buyer and the seller. Unlike title insurance premiums, closing fees are not set by the Florida Department of Insurance, so closing fees vary depending upon the closing agent and the transaction’s complexity. Closing fees are charged by closing agents to cover the…

Is Waiting on the Association Estoppel Delaying Your Closing?

It seems like lately it is more and more the norm that closing agents are waiting for the management company, or homeowner’s association, to issue the estoppel letter for closing. What can you do to ensure the association estoppel doesn’t hold up closing?  Make sure you get the management company or homeowner’s association contact information…

When is a Loan Commitment Not Really a Loan Commitment?

As many of you are aware most borrowers receive a Loan Commitment from their lender setting forth the terms and conditions that have to be met in order for a loan to be granted/funded.  In most borrower’s minds, the Loan Commitment is the lender’s promise (commitment) to grant and fund the loan even though the…
Menu