Another good article from a colleague:Effective October 1, 2009, the State of Nevada has enacted a "Good Funds" law.The law states that for escrow to close the buyer's closing funds must clear the bank.The buyer brings in a cashier's check for down payment and closing costs. The check must be deposited with the title/escrow company's bank prior to record/close.If this cashier's check is drawn from a local bank, this clearance can take up to two business days and therefore could delay closing and recording.If the buyer brings in an out-of-state cashier's check, the title/escrow company could have to wait up to 10 business days to verify the check has cleared.Talk to your favorite escrow officer for more information on how their company plans to addressing this new law.Based on this new law, you may want to consider coaching your buyers, especially those from out-of-state, to avoid the use of cashier's checks and to wire their closing funds to escrow.If you have any questions please don't hesitate to contact me.Best regards,Aaron M. GordonPhone: 1.702.283.2333eFax: 1.866.905.7922www.aarongordon.net
Carlos; this is good advice. It happened to me personally in real life. I had movers scheduled etc. and was unable to proceed for nearly five more days (leaving me with only hours to vacate/clean) because my buyer submitted a cashiers check at signing which had not cleared to allow recordation.
Wow! a similar law has been in effect in California for almost 15 years. It also already exists in Arizona. It's a good law and prevents cold-feet at the closing table.
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