Readers offer corrections to column about closings

It’s my own fault. I’m breaking the rule I made maybe 40 years ago that said to stay away from items about real estate closings.

The settlement procedures in which sellers finally turn over ownership to buyers vary widely from one area to another.

Then again, even local procedures have been changing. I never should have used that question in the column.

Q: As a paralegal who works on real estate closings, I’m always interested to see the questions you receive and your helpful, plain-language answers. I have a small quibble with a recent column, however.

In it, you advise the buyer to bring to closing a certified check made payable to himself or herself, and then endorse it to the seller.

This is indeed how we used to handle the transfer of funds at closing. However, a few years ago, the banks in our area — apparently due to some change in regulations — stopped being willing to cash such endorsed-over or third-party checks unless both the original payee and the new payee were present at the bank.

In other words, both buyer and seller would have to go together to the seller’s bank after the closing, present ID and perform the endorsement in front of the teller, which obviously could be extremely cumbersome.

Nowadays in our area, the buyers deposit the closing funds into either their attorney’s or lender’s escrow account in advance, and the closing checks are written from there. Alternatively, the buyer brings a cashier’s check payable to the seller in the exact amount needed — which is calculated by the lender and the parties’ attorneys at least three days before the closing.

Just thought you might want to know of this wrinkle. — A.M.

A:Thanks for reminding me.

Q: I have a comment on your recent article on closings. A first-time buyer had questions, and you advised to have the certified check or money order made out to himself and endorse it over at the closing. I work for an attorney, and in my area, title companies will now only accept checks made out to the title company.

With technology, people can deposit checks by taking pictures of them.

Apparently, some people deposited the check made out to themselves back into their account, so when the title company went to cash it, it was no longer good!

Also, if the amount to be brought to the closing is $50,000 or greater, the funds must be wired to the title company. (I don’t know if that is a state law or a federal law.) Just wanted to let you know. —C.R.

A:Thanks for the information. Contact Edith Lank at www.askedith.com, at edithlank@aol. com or at 240 Hemingway Drive, Rochester NY 14620.