Question

What should you do if a buyer shows up at your office at 1:00 PM with a personal check for the closing funds for a closing scheduled at 2:00 PM?A) Have the buyer sign a note to replace the check.B) Cancel the closing for breach of contract.C) Accept the check since it is on a local bank.D) Take the buyer to the bank to get a cashier's check.

Answer 1

Answer:

Answer is option D, i.e. take the buyer to the bank to get a cashier's check.

Explanation:

Compared to personal checks, cashier check is considered the more authentic and safer mode of transaction in case of loan fund closing. In the case above, there is still one hour left for the due time of closing fund. Thus, if the buyer has not issued the cashier's check, then he must be guided to do so as it is the most appropriate check used in closing funds.