Have You Ever Wondered Why Closing Funds Often Must Be Wired?
The Georgia Good Funds Law found at O.C.G.A. 44-14-13 states that closing funds must be “collected” funds, which means closing attorneys cannot accept checks exceeding nominal amounts. When closing, a personal or certified check may be accepted for smaller amounts, however, when amounts go over $5,000.00, then a wire transfer is the only available method.
Although a wire transfer may not be as convenient as a check, it is the safest way to ensure your funds are disbursed to the correct entity and protects all parties in your closing process. Your bank typically charges a fee of $15-$30 to expedite a wire transfer, but this is a small price to pay to make sure your money is safe. Also, for added safety, you can track the transfer within minutes of its initiation.
The protection goes beyond your closing. When a bad check is written, you run the risk of paying significant fees, losing your ability to write checks, and may even encounter legal issues. There have also been instances where people have presented funds at closing and then stopped the payment after signing documents. However, with a wire transfer, these funds cannot be stopped once handed over to the attorneys.
Ways to Protect Your Wire Transfer Information:
- Verify the authenticity of each wire request and never give out the full account number.
- Never send funds to an unknown business or person.
- Double-check the information on the wire transfer to ensure the funds get sent to the correct place by calling a primary wire recipient to confirm their wiring instructions before sending your wire.
*The information provided herein is for informational purposes and should be independently verified.