Q: I am buying a home, and my agent told me that I would need to send the money for the closing by wire transfer to the title company and that I needed to call the title company to confirm the details before having my bank wire the funds. I don’t understand why I can’t give them a check. Is this legit? — Sarah
A: Checks, even bank checks, can be stopped. They can also be easily counterfeited using modern technology. Because various parties will want their funds on closing day, the closing escrow agent will require “hard” funds, meaning they need money put into their account that cannot be called back or faked. Wire transfers are one of the only ways to accomplish this, and escrow agents no longer accept funds other than wire transfers at closing time to protect all involved.
Because of this requirement and the fact that real estate transactions involve large amounts of money, there is an ever-present threat of fraud. Criminals are constantly developing new ways to separate you from your hard-earned savings, and wire fraud is a genuine concern.
