At a real estate closing, you can get either a paper cashier’s check or a wire transfer — you decide which one before closing day by telling the settlement agent how you want to be paid. Sellers typically arrange this when the agent sends over a wire instruction form or asks whether to cut a check. Buyers owed money back at closing (from an earnest money overage or a seller credit) receive their funds the same two ways. Which method makes more sense depends on how fast you need the money, what fees you’re willing to absorb, and how comfortable you are handling either a large paper instrument or a same-day electronic transfer.
How Each Option Actually Works
A cashier’s check is drawn on the bank’s own funds rather than a personal account, which is why settlement agents accept it in place of a personal check. You leave the closing with the physical check and deposit it at your bank. Under federal banking rules, a cashier’s check deposited in person to a teller generally becomes available by the next business day. Deposit it through an ATM, a mobile app, or by mail and the hold may run to the second business day.1eCFR. 12 CFR Part 229 – Availability of Funds and Collection of Checks (Regulation CC)
A wire transfer moves money electronically through the Federal Reserve’s Fedwire system, which is built for same-day settlement of large transactions.2eCFR. 12 CFR Part 210 Subpart B – Funds Transfers Through the Fedwire Funds Service If the settlement agent sends the wire before the bank’s daily cutoff, which typically falls between roughly 2:00 p.m. and 4:00 p.m. depending on the institution, the funds usually land in your account the same day. Wires sent after cutoff wait until the next business day. Your bank may also place a short security hold on a large incoming wire before releasing it for withdrawal.
To set up a wire, the settlement agent needs your bank’s nine-digit ABA routing number and your account number, usually collected through a formal wire instruction form submitted several days before closing.3Fannie Mae. Sellers Designation of Wire Transfer Instructions (Form 482) Verify every digit with your bank before submitting the form. One wrong number can send your proceeds to the wrong account, and recovering a misdirected wire is difficult.
Fees for Each Method
Wire transfers are faster but cost more. Banks generally charge between $25 and $50 to send or receive a domestic wire, depending on whether you initiate it online or through a banker. A cashier’s check typically costs $10 or less, and some account types waive the fee entirely. These charges are small next to the transaction, but the settlement agent may still deduct them from your proceeds, so it’s worth knowing which one applies.
When the Money Actually Arrives
Signing the paperwork doesn’t automatically mean funds move that day. How quickly the money is released depends largely on whether your state uses wet funding or dry funding.
Wet Funding States
In most states, the lender wires loan proceeds to the settlement agent at or before the closing meeting. Once everyone signs, the agent can hand over the seller’s check or initiate the wire that same day. The money is already on the table when signatures happen.
Dry Funding States
A handful of states — Alaska, Arizona, California, Hawaii, Idaho, Nevada, New Mexico, Oregon, and Washington — allow dry funding. The lender reviews all signed documents for accuracy before releasing money, a review that typically takes one to three business days after the signing appointment. During that gap, the seller has signed away the property but hasn’t been paid yet. Once the lender approves, the settlement agent sends the deed to the county recorder and disburses funds.
Recording and the Practical Timeline
Regardless of funding type, the deed must be recorded with the county to give public notice of the ownership change, and most title companies won’t release seller proceeds until the deed is recorded. Recording usually happens the same day the lender funds the loan or the next business day.
Timing matters. A closing that wraps up late in the afternoon or on a Friday can push everything back. Wires sent after the bank’s cutoff won’t process until the next business day, and county recorder offices are closed on weekends. A Friday afternoon closing in a dry-funding state can mean you don’t see your money until the following Wednesday or Thursday.
Protecting Yourself From Wire Fraud
If you choose the wire option, wire fraud is the single biggest risk to know about. In 2023, the FBI’s Internet Crime Complaint Center reported over $145 million in losses from real estate-related fraud, often through schemes where criminals hack into email accounts and send fake wiring instructions that redirect closing funds to fraudulent accounts.4IC3. 2023 Internet Crime Report
The core rule: never trust wiring instructions received by email alone. Before any wire is sent, call your settlement agent or title company at a phone number you looked up independently, not one from the email, and verbally confirm every digit of the routing and account numbers. Be especially skeptical of last-minute changes to wiring instructions. Title companies rarely change their bank details mid-transaction.
A few additional safeguards worth building into your closing:
- Pick up wire instructions in person at the title company’s office when possible, rather than accepting them electronically.
- Right after sending a wire, call the title company using a trusted number to confirm the funds arrived in the correct account.
- Treat urgent language, pressure to act immediately, and instructions that differ from what you received earlier as red flags.
If you suspect a wire was misdirected, contact your bank immediately to attempt a recall. Speed matters — the sooner you act, the better the chance of recovering the funds.
What Happens If a Cashier’s Check Is Lost
Losing a cashier’s check for tens or hundreds of thousands of dollars is alarming, but there is a legal process for replacement. Under the Uniform Commercial Code, a claim on a lost, destroyed, or stolen cashier’s check becomes enforceable at the later of the date you file the claim or 90 days after the date printed on the check.5Legal Information Institute. UCC 3-312 – Lost, Destroyed, or Stolen Cashiers Check, Tellers Check, or Certified Check You may need to wait up to 90 days before the issuing bank will reissue the funds, since the bank needs that window to protect against someone else cashing the original. That waiting period is one reason many people handling large sums choose a wire despite the higher fee.
Buyers Who Get Money Back
Most of this guide speaks to sellers, since sellers are usually the ones walking away with proceeds. Buyers are typically on the paying side of the table, bringing a cashier’s check or wire for the down payment and closing costs. But if your earnest money deposit exceeds what’s owed at closing, or the seller agreed to a credit for repairs or closing costs, you receive that difference back the same way a seller does — as a cashier’s check or a wire, arranged with the settlement agent in advance.