Generally speaking, in Virginia, for many years, it has been our practice to require cashier’s checks for all closings. Recently, we have learned the Federal Reserve has been putting a random hld on certain cashier’s checks, thus causing our local banks to sometimes not give immediate credit on the check. This Federal Reserve policy is due to the recent increase in counterfeit cashier’s checks. One way to avoid the difficulties these holds can cause is to use bank wires instead.
Buyers should arrange with their banks to be able to wire to the settlement attorney the necessary funds to close. As long as the Buyers arrange for the wire ahead of time, this new practice may actually be easier for the Buyers, as they do not need to rush to their bank to get a cashier’s check. Also, as the exact amount needed to close may not be available until just before closing, the final amount of the bank wire can be adjusted accordingly.
As usual, every situation has exceptions. Consult with a Charlottesville lawyer to get the full details.