branbosc, Home Buyer in Lafayette Hill, PA

Montgomery County, PA: If the proposed settlement date is in 28 days, can I still use a personal check for my good faith deposit?

Asked by branbosc, Lafayette Hill, PA Tue Sep 17, 2013

I have been told that PA law requires a cashier's check instead, but cannot find any such law and have not had that experience in the past. Thanks!

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Andrew Himes, Agent, Collegeville, PA
Tue Sep 17, 2013
BEST ANSWER
Line 11 of The PA agreement of sale states that "All funds paid by buyer, including deposits, will be paid by check, cashier's check, or wired funds. All funds paid by buyer within 30 days of settlement, including funds paid at settlement, will be by cashier's check or wired funds, but not by personal check".

So if you are buying a house and you wrote your offer on the standard agreement of sale then this is the case. That being said, check with the agent for the seller, as it will be that company that determines whether or not they will accept a personal check within this timeframe.

Andrew Himes
Prudential Fox & Roach, Realtors
1 vote
Bobby Daddis, Agent, Conshohocken, PA
Tue Sep 17, 2013
It's not a law, rather a requirement that most brokerages have now put into effect, from my understanding. The reasoning behind the new requirement is they want ample time for a personal check to clear - upwards of thirty days. Once you get into that thirty day mark, they feel more comfortable with a cashiers/bank check. This has been adopted by most companies this year, and was not always the case in the past! Let me know if you have any more questions! bobby@bobbydaddis.com
1 vote
Christopher…, Agent, Collegeville, PA
Tue Sep 17, 2013
Good Morning, Per the PA state sale contract, it reads that "All funds paid by Buyer within 30 Days of settlement, including funds paid at settlement, will be by cashiers check or wired funds, but not by personal check". This can be found on page Paragraph 2. subsection B.

Please feel free to contact me directly in the event you have further questions.

Chris Nelson, ABR
RE/MAX SERVICES
National REO Broker Association (NRBA) Member
REOMAC Member
REOBroker.com Member
Certified Distressed Property Expert (CDPE)
794 Penllyn Pike, Ste. 120
Blue Bell, Pa 19422
215.641.2500 Main
215.641.2542 Fax
484.576.7430 Cell*
1 vote
R. Eric Axel…, Agent, Sewell, NJ
Tue Sep 17, 2013
No. Cashiers check. It's not a law. It's part of the real estate contract. Why are resistant to get a cashiers check?
1 vote
Thanks for your response. I'm not resistant, I just am transferring money and will have a 1 day delay, and I prefer to get the offer in sooner than later. It is what it is, and I'll just go a day later. Thanks
Flag Tue Sep 17, 2013
Joshua Stein, Agent, Conshohocken, PA
Tue Sep 17, 2013
Like Andrew said, it's right there on Page 2 of the Standard Agreement of Sale. Any deposit within 30 days of closing must be a bank check.

Best of luck on your purchase!

Joshua Stein, REALTOR®
Coldwell Banker Preferred – Conshohocken

Office:(610) 828-9558 * Cell: (215) 866-8030
Direct:(484) 270-1165 * Fax: (215) 999-5894
Email: jstein@cbpref.com
Web: http://www.joshuasteinhomes.com
PA License #RS317975
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