How to Send Earnest Money to a Title Company

Earnest money demonstrates a buyer’s serious intent to purchase a property. This financial commitment is typically submitted early in the real estate transaction process. The funds are generally held in a neutral third-party escrow account, often managed by a title company, until the transaction concludes. Secure transfer of these funds is important for the transaction’s progress and safeguards both parties.

Gathering Essential Information

Before initiating any transfer of earnest money, gather specific details from the title company. Obtaining accurate information helps avoid delays and misdirection of funds. This includes the title company’s exact legal name, full physical address, and the name of the specific contact person handling your transaction.

Acquiring transaction-specific identifiers is important for accurate processing. This includes the full property address, the names of the buyer and seller, and any unique transaction or file numbers provided by the title company. These identifiers ensure the earnest money is correctly attributed to your specific real estate deal.

Confirming the title company’s accepted payment methods is a preliminary step. Not all title companies accept every form of payment, and clarifying this upfront prevents wasted effort. Determine whether wire transfers, certified checks, personal checks, or secure online payment portals are permissible for your transaction.

If a wire transfer is the chosen method, obtaining precise banking details is paramount. This includes the exact bank name, routing number, account number, and the specific recipient name, typically the title company’s designated escrow account. Verify these wire instructions through a secure and independently confirmed channel, such as a phone number obtained directly from the purchase agreement or the title company’s official website, rather than relying solely on email communications.

For payments made by check, whether certified or personal, confirming the exact payee name is necessary. This often involves specific wording, such as “XYZ Title Company, as escrow agent,” to ensure the funds are legally directed. Verify the correct mailing address or physical delivery location for the check. If an online payment portal is to be used, obtain clear instructions for accessing and navigating it, including any necessary login credentials or specific transaction IDs.

Methods for Sending Earnest Money

Once all necessary information is gathered, the earnest money can be transmitted through one of the accepted methods. Each method has its own procedure, and understanding these steps helps ensure a smooth transfer. The choice of method will depend on the title company’s accepted options and your personal banking preferences.

Initiating a wire transfer typically involves visiting your bank branch in person or utilizing your bank’s online banking platform. Input the specific bank name, routing number, account number, and the exact recipient name, all previously obtained from the title company. Banks generally impose a fee for outgoing wire transfers, which can range from $25 to $50. These transactions are usually irreversible once processed, so extreme care is necessary when entering details.

Obtaining a certified check or cashier’s check requires visiting your bank, as these checks are guaranteed by the bank, requiring the funds to be available upfront. The bank will issue the check; ensure it is correctly made out to the precise payee name provided by the title company, specifying the exact earnest money amount. Delivery options include mailing through a traceable service, such as USPS Certified Mail, FedEx, or UPS, which provides proof of delivery. Alternatively, hand-deliver the check directly to the title company’s office during business hours, obtaining a signed receipt.

Personal checks may be an option for earnest money, though often accepted for smaller amounts or when explicitly agreed upon by all parties. When writing a personal check, ensure the current date, exact payee name, numerical and written earnest money amount, and your signature are accurately completed. Delivery can be by mail or by physically dropping off the check at the title company’s office. Personal checks may require a longer clearing period, potentially delaying the official receipt of funds.

If the title company offers a secure online payment portal, this provides a digital alternative for submitting earnest money. Access the portal using credentials or instructions previously provided. Within the portal, select the payment type, enter the precise earnest money amount, and confirm all transaction details before finalizing payment. Online portals often provide immediate transaction confirmation and generate a digital receipt for your records. This method offers convenience and quicker processing compared to traditional check methods.

Confirming Receipt and Security Precautions

After sending earnest money, confirm its successful receipt by the title company. Within one to two business days, contact the title company directly to verify the money has been received and credited to your transaction. If confirmation is not received within this timeframe, follow up promptly to investigate the transfer status.

Maintain meticulous records of the earnest money transfer. This includes retaining wire transfer confirmation numbers, copies of checks issued, tracking numbers for mailed items, and digital receipts from online payment portals. These records serve as proof of payment and can be referenced if discrepancies arise.

Protecting against earnest money fraud requires vigilance and specific precautions. Always verify wire instructions by directly calling the title company using a phone number obtained from a trusted, independent source, such as the original purchase agreement or the title company’s official website. Never rely solely on wire instructions received via email, especially if they appear to be last-minute changes or come from an unfamiliar address.

Legitimate title companies rarely alter their bank accounts in the middle of a transaction. If you receive such a request, independently verify it through a known, secure contact method. If you suspect earnest money fraud, immediately contact your bank to halt any pending transactions, notify the title company, and report the incident to local law enforcement.