Which of the following methods of payment does NOT comply with the requirement that good funds be delivered at closing?

Rationale

A title company check does NOT comply with the requirement that good funds be delivered at closing.

A title company check may not be considered "good funds" because it typically requires a waiting period for clearance, which can delay the closing process. In contrast, other forms of payment like certified checks and wire transfers provide immediate access to funds, ensuring compliance with the closing requirements.

A (A savings and loan teller check) YOUR ANSWER

A savings and loan teller check is generally considered good funds because it is drawn on the institution's account and can be guaranteed by the bank. This type of check usually clears quickly, allowing for timely completion of a real estate transaction.

B (Funds transferred by wire) YOUR ANSWER

Wire transfers are typically regarded as good funds since they provide immediate access to the money being transferred. The funds are available at the time of closing, ensuring compliance with the requirement for prompt payment without delays associated with check clearance.

C (A certified check) YOUR ANSWER

A certified check is also classified as good funds because it is guaranteed by the issuing bank, which verifies that the account holder has sufficient funds at the time of issuance. This form of payment ensures that the funds are available at closing without any risk of bouncing.

D (A title company check) CORRECT

A title company check may not meet the good funds requirement since it often needs to clear before the funds are fully available. This can lead to delays in the closing process, which is why it is not always accepted as immediate payment.

Conclusion

In real estate transactions, it is crucial for good funds to be available at closing to avoid delays. While a title company check may not provide immediate access to funds, methods like wire transfers, certified checks, and savings and loan teller checks do comply with this requirement, ensuring a smooth and timely closing process.

Which of the following methods of payment does NOT comply with the requirement that good funds be delivered at closing?

A title company check does NOT comply with the requirement that good funds be delivered at closing.

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