Selling a house can be a long process and it makes sense that sellers want to know when the sellers will get money, especially if those funds are being used to buy a new home. Whether you’re selling your home in Kansas City, Missouri, renting a home in Portland, or looking for an apartment in Los Angeles, California, or buying your next home, the understanding of when a seller gets paid after closing can help you understand that you can be at ease to know when you’re expecting payments.
The short answer is that the seller can get the money 24-48 hours after closing, but this can last several days depending on certain factors in the closure process, such as whether the funds were spread out through cashier checks or wire transfers, or whether they were wet or dry closures. This Redfin article explores what to expect during the closure process and when sellers can expect to receive funds.
In this article:
What should I do before payment?
Things you need to know about closing dates
What role does the escrow officer play in the payment of the fund?
When will the seller be paid after closing?
What happens if the buyer’s funds are not cleared?
Conclusion: When do sellers get money after closing?
What should I do before payment?
It usually takes 30-60 days to end the sale after accepting an offer from home. This delay is the result of the due diligence period, where the buyer conducts inspections and other investigations before actually signing the document.
The due diligence period procedure can include one of the following:
During this period before the settlement, buyers and sellers may continue their negotiations. For example, if a home inspection reveals extensive repairs, the buyer could potentially end the contract due to a home inspection emergency. Alternatively, the seller may choose to lower the purchase price or perform the repairs themselves before closing.
Things to remember: After accepting the offer, the transaction enters a due diligence period. There, specific inspections and investigations are conducted before the sale is completed.
Things you need to know about closing dates
In many cases, the payment stage and closing date occur simultaneously. A closure is when an act or title is officially recorded in a county and the property changes its hand. Many documents are involved at this stage.
To close, you must sign the document below:
Deed: Transfer ownership of the property to the buyer. House of Representatives title: Indicates ownership of the property. Sales Bill: Confirm the sale and purchase of real estate. Affidavit in title: confirm that you are the legal owner of the home and there are no liens or claims on the property. Closing disclosure: Provides an overview of terms of sale, including all costs, fees and payment schedules for the parties. Loan Payment: Verify that the seller’s mortgage has been repaid from the proceeds of the sale. Transfer of tax returns: Document property taxes that are due (required in some states)
Closing dates may take some time, but one way to speed up the closure process is to work with top tier agents, such as one of Redfin’s real estate agents. The cause of the delay is usually a result of individuals not quickly signing and reviewing documents. A good agent stays above the real estate lawyer and buyer agents, ensuring that everything closes as smoothly as possible.
In short, many documents are included on closing days. Be prepared to sign many documents.
What role does the escrow officer play in the payment of the fund?
They can be called escrow officers, closing agents, or settlement agents, but their roles are the same. Escrow representatives will act as a fair third party to promote the same in the real estate, including payment of funds after the sale is completed.
Before the seller can obtain the money after closing, the escrow agent must use those funds to repay the mortgage that exists on the seller’s property. The funds are then used to pay the closing costs (e.g. real estate board, escrow fees, title insurance, etc.) before they are issued to the seller.
TL;DR: The Escrow Officer will ensure that all fees and unpaid fees are paid before the seller is finally undergoing a reduction.
When will the seller be paid after closing?
Sellers are usually paid 24-48 hours after closing, but that depends on how you receive your funds and what your local laws are. Once the buyer and seller settle, sign all documents, the deeds are recorded in the county and all service providers and unpaid fees are paid, the seller will receive the money.
There is no clear answer as to when sellers will receive the money, so budgeting extra time after closing is a best practice, making large purchases like new real estate to receive the funds.
Wire transfer or cashier check?
Usually, the sale of the home is paid through a cashier’s check or wire transfer. Normally, wire transfers must be transferred to an escrow account and then to the seller’s account, so processing can take 24-48 hours.
Casher’s checks must be deposited and settled before the funds can be delivered, and the bank will hold the deposit for up to seven days. Cash register checks take time to clear and deposit, but many real estate agents advise clients to receive money like this, due to the widespread use of wire fraud scams.
How will wet or dry closure affect my sales?
Wet and dry are references to ink in a document. In Wet State, you can receive funds within hours, as long as the appropriate documents are submitted to the bank before the appropriate documents stop receiving new requests for the day. Wet is a reference to ink that is still wet on the page when you receive the funds.
Most states require wet closures, while nine states allow dry closures. Dry closings allow for a gap between signing the document and the payments being initiated. However, all parties must agree to a dry closure in advance.
These nine states allow dry closures.
Alaska Arizona California Hawaii Idaho Nevada New Mexico Oregon Washington
Short answer: Sellers can usually expect to get money in 24-48 hours, but it can take up to a few days depending on your particular situation.
What happens if the buyer’s funds are not cleared?
It’s not often that the buyer’s funds are not clear, but that’s a possibility. This is usually the result of funding issues or delays in wire transfers. This is rare, but can lead to delays in fund expenditures of more than one day.
If a delay occurs, the closing agent continues to notify everyone about the next step. Most contracts have seller protection, so you’re aware but not worried.
In short, buyer funds are rarely unclear, but they are usually the result of funding issues and delayed wire transfers. That’s not the cause of concern, and most contracts have the seller’s protection if something happens.
Conclusion: When do sellers get money after closing?
Most sellers can expect to receive the funds within 24-48 hours of closing, but several factors can affect the exact timing, including the type of closure, payment method, and last-minute delays.
Understanding the steps involved and working with knowledgeable real estate agents and escrow officers will help you ensure smoother and more predictable transactions. With proper preparation, you know what to expect and are ready to move forward with confidence after sale.
