Tip 28-2010: Banks, Certified Checks & Wires

For many years, it has been our local practice to require cashiers checks for all closings. Recently, we have learned the Federal Reserve has been putting a random hold on certain cashiers checks, thus causing our local banks to sometimes not give immediate credit. This Federal Reserve policy is due to the recent increase in counterfeit cashiers checks. One way to avoid the difficulties these holds can cause is to require bank wires instead of cashiers checks.

For example, the Buyer will wire to his/her attorney the necessary funds for the purchase of the real estate. (Banks are already wiring the loan proceeds to the Buyer’s attorney.) Then the Buyer’s attorney will have immediate access to the closing funds in order to close with the Seller’s attorney without any delay or hold on the funds by the Federal Reserve. (Local practices may evolve to address this issue.)

For now, please advise your buyers that they 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 cashiers 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.

Please contact me if you have any questions.
 
William D. Tucker, III
Tucker Griffin Barnes P.C.
Charlottesville, Virginia
434-973-7474
Tucker@TGBlaw.com
http://www.tgblaw.com/
http://www.tgblaw.blogspot.com/

Tip 27-2010: Tax Credit Closing Deadline Extended

As most already know, the deadline for the completion of qualifying First-Time Homebuyer Credit purchases has been extended. Taxpayers who entered into a binding contract before the end of April now have until September 30, 2010 to close on the new or replacement home.

The Homebuyer Assistance and Improvement Act of 2010, enacted on July 2, 2010, extended the closing deadline from June 30 to Sept. 30, 2010 for eligible homebuyers who entered into a binding purchase contract on or before April 30, 2010 to close on the purchase of the home. Even though this extension should provide enough time to complete all eligible closings, we all have to stay diligent to make sure this new deadline is met.

Please contact me if you have any questions.
 
William D. Tucker, III
Tucker Griffin Barnes P.C.
Charlottesville, Virginia
434-973-7474
Tucker@TGBlaw.com
http://www.tgblaw.com/
http://www.tgblaw.blogspot.com/