do I get my real estate check at closing

Are Real Estate Checks Disbursed at Closing?

After all of the closing documents are signed, whether you are the real estate agent, the seller or maybe even the buyer, you may expect to get a check as soon as all the paperwork has been signed. Instead, you are told by the closing attorney that you will have to wait. What is the attorney waiting for and why?

Attorneys must follow a code of ethics that governs their relationship with clients and their role as fiduciaries in real estate transactions. These rules are called the Rules of Professional Conduct. They dictate that an attorney may not use the funds in their trust account belonging to one client in order to disburse a real estate transaction for another client. Therefore, before our real estate attorneys can disburse funds, they must ensure that the money for the transaction must be in the trust account and available for withdrawal. 

First, our real estate attorney must have all the money from the buyer or buyer’s lender and/or seller deposited in the law firm trust account. This includes any buyer’s funds, earnest money, and seller’s funds if the seller has to bring money to the closing. Whether the funds are received by wire or check, all funds must clear and be available for withdrawal from our law firm’s trust account before any checks can be issued.

If the property is being financed, the lender’s funds must be received in the trust account and our real estate closing attorney must have authorization to disburse those funds. Usually before the lender will authorize the use of the loan funds, all the closing documents must be properly executed, and most lenders require approval after inspecting the documents.

Once all the money is in the law firm trust account, the lender has given funding authorization, and the real estate documents have been recorded, our real estate closing lawyer can promptly disburse checks to the parties in the transaction.

At Tien Law Firm, our real estate lawyers works diligently to disburse funds promptly and seek to make the closing process as smooth as possible for our clients. To discuss a residential or commercial closing with our real estate attorneys, contact us today at 1-888-988-6613.

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