Funds Availability Guide To Buyers

After your offer to purchase is accepted it is important to understand the “Good Funds Requirements” by the escrow company when closing of all transactions in Arizona.  In the good Ole’ Days we could use cashier checks, personal checks and in rare occasions cash.  After 911 everything changes and cash has to be vetted to the source it came form and banks now are not as stable as they were in the past with the FDIC closing or taking over banks that are in financial distress.  Now in 2013 and beyond we have new set of rules related to “Good Funds” when purchasing real estate.

No disbursements can be made against a draft until it has been submitted for collection to a depository bank and we have confirmation that final payment has been received and credited to the receiver’s account.  This can take days and most real estate transactions need to closing normally on the day the funds are available

Third Party Checks
It is normal policy of an Escrow and Title Agency NOT to accept third party checks. These checks are classified as: any check drawn on a non-financial Institution account, payable to a payee other than the Escrow and Title Agency and subsequently endorsed over to the Escrow and Title Agency. There is one exception: United States Treasury checks payable to Farmers Home Administrations borrower, endorsed over to Escrow and Title Agency in some cases but consult the Escrow and Title Agency.

Foreign Checks
It is the policy of Escrow and Title Agency NOT to accept foreign checks into escrow.  If you are from Canada or another country be prepared that your required funds need to be wired directly into the escrow company or title agency’s account plus the funds must be converted to U.S. dollars as the exchange rate changes from day to day.

Business Day
A business day is defined as a calendar day other than Saturday or Sunday, and also excluding most major holidays. If January 1, July 4, November 11 or December 25 falls on a Sunday, the next Monday is also excluded from the definition of a business day.

Local Checks
A check is considered “LOCAL” when it is drawn against a bank located in the same processing region as our depository bank. The check processing region for the State of Arizona is: Los Angeles Region: ABA Numbers 1221 and 3221