I was just informed by a major bank (new to this area) that wired funds and cash are the only types of funds they guarantee to be available for immediate use upon deposit. Cashier and trust account checks are no-longer immune from lengthy holds unless the bank on which the check was written on will physically acknowledge and guarantee the money. According to a representative of this bank, these restrictive policies have been implemented due to the increase of fraud they're experiencing.
Here is one recent example of a hold put on a cashiers check:
- Sizable deposit made on 9/08/2009
- Deposit Hold Notice received by mail on 9/14/2009
- Seven checks/withdrawals totaling $235.56 were posted on 9/14-15/2009
- Insufficient Funds fees of $270 charged by bank on 9/15-17/2009
- Sizable deposit finally made good on 9/17/2009
- Customer calls bank (required ) to reverse fees from insufficient funds 9/21/2009
Escrow companies in WA may want to take notice given that a cashier check is an approved form of "collected funds" for customers to use as a deposit into escrow.
Some say that the escrow signing is the last impression a client has of a real estate transaction. I venture to say it is when they get to spend their proceeds without penalty!
