Cashiers Checks for real estate and mortgage transactions.
Last modified June 7, 2023A cashier's check is a draft guaranteed by a bank, drawn from the bank's own funds and signed by an authorized cashier or teller. It's used in place of cash, personal checks, credit cards or money orders because of the security of the backing by financial institutions. Because of the risk of fraud and uncertainty of funds, in today’s real estate market this instrument isn’t used as often for Closings as wired funds into the Title companies Escrow account. Certified Checks or Certified Funds are often used as Real Estate Binder or Earnest Money Deposits if the EMD is a significant amout of money above $7500. The Cashier’s Check is now used as the Earnest Money deposit on REO Properties or high deposit residential or commerical transactions.
Did you find this explanation helpful?
Top 10 terms for First-Time Home Buyers:
- VA funding fee
- Buyers Closing Costs you'll want to know about.
- ALTA (American Land Title Association) Closing Disclosure Statements
- Title company Escrow account
- Survey Fee
- Buy Down
- Buyers market definition
- Lender Inspection Fee
- Homeowner's or Hazard Insurance policy
- Government Sponsored Entity or GSE