How to Wire Money to a Title Company

Wiring money to a title company is a common step in real estate transactions, particularly for down payments or closing costs. This electronic transfer of large sums requires accuracy and security. Understanding proper procedures ensures a smooth and secure financial transfer during a real estate closing.

Understanding Wire Transfers to Title Companies

A wire transfer is a direct electronic transfer of funds from one bank account to another. Unlike other electronic payment methods, such as ACH transfers, wire transfers offer a high degree of finality, meaning funds are immediately available and difficult to recall. This makes them suitable for real estate transactions where large sums need to be moved quickly and securely.

Title companies frequently require wire transfers for “good funds” at closing. This guarantees money is ready for disbursement to various parties, like the seller and real estate agents, immediately after closing. Wire transfers’ speed and security reduce the risk of delays compared to other methods, like personal checks that take days to clear.

Gathering and Verifying Wire Instructions

Gather wire instructions from the title company before initiating any transfer. Instructions include the title company’s legal name, bank name, routing number, account number, and transaction reference numbers (e.g., property address, file number). These details ensure the funds reach the correct destination.

Independently verify wire instructions to prevent fraud, a significant risk in real estate transactions. Always call the title company directly using a phone number from a trusted source (e.g., official website, closing documents, real estate agent). Never rely on email instructions, especially last-minute changes, as accounts can be compromised. During the call, confirm all wire instruction details: account name, routing number, and account number.

Initiating the Wire Transfer

After gathering and verifying wire instructions, you can proceed with initiating the transfer through your bank. There are two main methods: online banking or in-person at a bank branch. For online banking, navigate to the wire transfer section within your bank’s portal, input verified recipient details, and specify the amount. Some banks require additional authentication, such as a phone call or a security token, for large online transfers.

For in-person transfers, visit a bank branch with government-issued identification, account information, and verified wire instructions for a teller. Banks have cut-off times for same-day processing, usually by early afternoon to 5:00 PM Eastern Time. Transfers after this time process the next business day.

Wire transfers incur fees, which vary by bank and transfer type. Domestic outgoing wire transfer fees range from $0 to $35, with a common fee around $25. Confirm the exact fee with your bank before initiating the transfer. The funds are debited from your account immediately upon initiation.

Confirming Receipt and Next Steps

After initiating the wire transfer, confirm fund receipt with the title company. Contact the title company directly by phone (using a previously verified number) to confirm receipt. Provide the wire confirmation number (Federal Reference number or Fed ID) given by your bank.

Domestic wire transfers process within the same business day, often in hours, if sent before the bank’s cut-off time. Allow one to two business days for funds to settle, especially near weekends or holidays. If the title company doesn’t confirm receipt within the expected timeframe, contact your sending bank with the wire reference number to request a trace. Your bank can investigate the status of the transfer and help resolve any delays.