How to Wire Money to a Title Company

A wire transfer represents an electronic movement of funds directly from one bank account to another. In real estate transactions, these transfers are commonly used to send substantial sums, such as down payments, earnest money deposits, or closing costs, to a title company or escrow agent. This method provides a secure and efficient way to transfer large amounts of money without physical currency. The immediacy and finality of wire transfers make them a standard practice for property closings, where timely and guaranteed funds are necessary. Given the significant amounts involved, precision and security are vital throughout the entire process.

Obtaining and Verifying Wire Instructions

The first step involves acquiring specific wire transfer instructions from the title company handling your real estate transaction. These instructions are typically provided through email or a secure online portal. Email is vulnerable to fraud, and cybercriminals frequently attempt to send fraudulent instructions. Therefore, independent verification of these instructions is essential to protect your funds.

To verify the instructions, contact the title company directly using a phone number you previously confirmed through a trusted source, such as their official website or earlier, verified closing documents. Never use a phone number provided within the email containing the wire instructions, as this could be part of a scam. This direct verbal confirmation serves as the primary defense against sophisticated wire fraud schemes, where fraudsters alter wiring details at the last minute.

Complete wire instructions include several key pieces of information for a successful transfer. These specify the recipient bank’s full legal name, its ABA routing number for domestic transfers, and the title company’s account number. For international wires, a SWIFT/BIC code will be required. The instructions should also include the exact account name (e.g., “XYZ Title Company Escrow Account”), the recipient bank’s physical address, and a specific reference or memo line to ensure funds are correctly attributed to your transaction. Review these details for inconsistencies or suspicious elements, such as misspellings.

Preparing for the Wire Transfer

Before initiating the wire transfer, prepare to ensure a smooth transaction. First, confirm the precise amount to be wired, which is usually detailed in your closing disclosure or other official closing documents. Cross-reference this figure with your lender and the title company to prevent discrepancies.

Understand your bank’s wire transfer policies, especially cut-off times. Most banks have daily deadlines, often in the early to late afternoon, for processing same-day domestic wire transfers. If a transfer is initiated after this cut-off time, it will be processed on the next business day, which could delay your closing. International wires have earlier cut-off times and take longer to process (one to five business days).

Gather your banking information, including your account and routing numbers. Ensure your account has sufficient funds, as wire transfers require the full amount upfront. Be aware of any daily wire transfer limits imposed by your bank, which can vary, but are often substantial for large transactions like real estate.

For in-person wire transfers, your bank may require you to present a valid government-issued identification, such as a driver’s license, to verify your identity. Some banks may also require additional documentation for larger transfers or for first-time wire senders. Contact your bank in advance to confirm any specific requirements.

Executing the Wire Transfer

With all verified information and preparations complete, you are ready to execute the wire transfer. There are two primary methods for initiating a wire: in-person at a bank branch or through your bank’s online banking platform. Each method has specific procedural steps.

To complete the wire transfer in person, visit a bank branch. There, you will fill out a wire transfer request form, providing all the recipient details previously verified, including the title company’s bank name, routing number, account number, and the specific reference information for your transaction. The bank teller will review the form and your identification, confirming the details before processing the transfer. Double-check all information on the form before finalizing, as wire transfers are irreversible once sent.

Alternatively, many banks offer the convenience of initiating wire transfers through their online banking portals. After logging in, navigate to a “Pay & Transfer” or “Wire Transfer” section. You will then be prompted to enter the recipient’s bank details, account information, and the transfer amount. Online platforms incorporate security protocols, such as two-factor authentication, to confirm your identity before the transfer is submitted. Banks charge a fee for outgoing wire transfers, typically $25 to $35 for domestic transfers. These fees are deducted directly from the sending account.

Confirming and Documenting the Transfer

After initiating the wire transfer, obtain a confirmation or reference number from your bank. This number serves as proof that the transfer has been sent and allows for tracking if needed. Your bank provides this confirmation number immediately, on a physical receipt or on screen.

Once you have the confirmation number, promptly notify the title company that the wire has been sent. Provide them with the confirmation number and any specific reference details you included in the transfer, such as your property address or transaction ID. This allows the title company to anticipate the incoming funds and correctly apply them to your account. Some banks offer a feature to track the wire’s progress.

Maintain thorough records of the transaction. Keep the bank receipt, any confirmation emails, and screenshots of the online transfer details for your personal files. This documentation is valuable for your financial records and serves as proof of payment. If the wire does not arrive as expected, first contact your sending bank with the confirmation number to inquire about its status. If your bank confirms the funds were sent correctly, then reach out to the title company to ensure they are actively monitoring for the incoming transfer.