Which Is Safer: Cashier’s Check or Wire Transfer

There are two main ways to transfer funds at the closing of a real estate transaction, a certified check or wire transfer. Often times the question of which one is best comes up.

There has been a debate brewing about cashier’s checks and wire transfers and both sides have compelling arguments.

To help you make the best decision for your situation, we’ve put together the pros and cons of cashier’s checks and wire transfers.

Cashier’s Check

The Pro’s: 

The benefit of a check is that it’s typically cheaper than paying fees related to wire transfers.

You can reverse a check more easily than you can a wire transfer, although most title companies require five to ten days for a cashier’s check to clear to prevent the remitter from reversing the check.

The Cons: 

You can always lose a check, which is bad news when the funds are in escrow.

Checks are easier to forge than a wire transfer.

Checks make it impossible to do a virtual closing. You have to be there to hand it over in person. Most title companies require wire transfers, so cashier’s checks may not even be an option for your payment.

Wire Transfer

The Pro’s:

Wire transfers are great for overseas and virtual closings where you’re not actually there in person.

They are very safe overall, and they serve as a great way to send money securely.

The Cons: 

They can come with fees from the banks sending and receiving, but given the convenience and safety they offer – it can more than make up for the fees charged.