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Wiring funds will ensure on-time closing

June 1, 2018
By ERIC FEICHTHALER - Real Estate Law , Cape Coral Daily Breeze

Dear Mr. Feichthaler:

I am in the process of purchasing a home, and the law firm handling the closing is requiring wired funds. I really am a pain in the rear when it comes to expenses like this, and I hate to spend $25 on a wire fee when a check would be good. Why are they requiring a wire, and can I refuse?

- Antonio L.

Dear Antonio:

Sir, I can empathize with your situation. I have four kids, so any time I can avoid paying for something unnecessary or save money, I do it! In this case, though, the firm is correct. A real estate transaction can only be completed with settled funds. When a wire is received by a closing firm, the funds are immediately available. In contrast, when a check is deposited, it can take several days for it to clear. Especially when those days take you beyond your scheduled closing date, you could actually breach your real estate contract as a result of being unable to close, even though you actually have the funds to buy the property. Some people have asked whether ACH / Electronic transfers count as wires, and the answer is NO. Unlike wires, ACH deposits can be reversed by the sender weeks after a closing occurs.

Although I love saving money, paying a few dollars to send a wire to ensure an on-time closing is a given for me. Especially since the firm handling your closing likely won't accept anything other than a wire, it would be best to accept paying this small amount to avoid potential issues with your on-time closing.

Eric P. Feichthaler has lived in Cape Coral for 28 years and graduated from Mariner High School in Cape Coral. After completing law school at Georgetown University in Washington, D.C., he returned to Southwest Florida to practice law and raise a family. He served as mayor of Cape Coral from 2005-2008, and continued his service to the community through his chairmanship of the Harney Point Kiwanis Club KidsFest from 2011-2015, which provides a free day of fun and learning to thousands of Cape Coral families, and funds numerous scholarships. He has been married to his wife, Mary, for 14 years, and they have four children together. Recently, he earned his board certification in Real Estate Law from the Florida Bar. He is also a Supreme Court Certified Circuit Civil Mediator.

This article is general in nature and not intended as legal advice to anyone. Individuals should seek legal counsel before acting on any matter of legal rights and obligations.

 
 
 

 

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