When Do I Receive My Money after a Property Closing?

Family sitting on a front porch with a "sold" sign in the foreground.
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Part of the eagerness to close on the sale of your home has to do with getting paid. Sellers receive their money, or sale proceeds, shortly after a property closing. It usually takes a business day or two for the escrow holder to generate a check or wire the funds. However, the exact turn time may depend on the escrow company and your method of receipt. The exact amount of your proceeds appears on your HUD-1 settlement statement, a form mandated by the Department of Housing and Urban Development.


Why the Delay?

Several parties must be paid before you receive your sale proceeds. Third-party service providers, including the escrow company, title company, attorneys and real estate brokers, must get their fees. Your previous mortgage and any other liens must also be paid off. Closings are known as "settlements" because you, via the escrow holder's disbursements, settle up with everyone who assisted in the sale of your home.

Wiring Proceeds

Before your property closing, the escrow holder will ask how you want to receive your sale proceeds. If you choose to have the funds wired to your bank account, you must first provide written wire instructions. Escrow holders can also wire funds to your money market and stock accounts. Although your escrow holder likely will wire the proceeds within two days of closing, your bank may not credit your account with the funds until the day after it receives the wire.


Delivering A Check

If you ask for a check, you can either pick up the money in person or have it delivered. With your permission, the escrow holder may even allow your real estate broker to personally deliver your check. You must provide escrow with a forwarding address before closing to receive your check by mail or overnight delivery. Depending on the escrow company and how early in the day closing occurs, your check may be ready on the same day as closing.

Sale Proceed Holdups

Your escrow holder may hold your sale proceeds until a certain condition is met after closing. For example, some transactions allow sellers to cover the cost of home repairs after the property closing. Both the buyer and seller may instruct the escrow holder to pay for the repairs out of the sale proceeds. The escrow holder abides by disbursing funds to the parties after the work is completed to satisfaction.