What happens when someone sells a paid-off house?

[dr.girlfriend]

My mom is selling her house.  Do the buyers just do a cashier's check, or wire the money to her, or what at closing?  She's very new to managing finances, and I've never sold a house.  :-)  She recently got scammed and we had to change all her accounts, so I want to make sure she's in good shape to receive the funds.

[hbomdiggity]

I would imagine it’s really no different than having a mortgage - the escrow company will just wire the balance to whatever bank account she gives them.

[goldengirlz]

It might vary by state, but there’s often a title company involved in the sale that’s responsible for disbursing funds.

Our house wasn’t paid off, but the title company collected the funds from the buyers and paid the bank its portion and the rest was deposited in our account. I assume it’s similar if the house is paid off except the seller gets 100%.

[jinkies]

We sold a paid off house, but it was 12 years ago so my memory is fuzzy. I just asked my H, and as best as we can recall, the buyer gave us a cashier check for the full amount.

[pierogigirl]

At every closing I've been to, the bank cuts a check to the sellers minus any fees or after paying off the remaining mortgage. We bought from an estate and the lawyer took possession of the check as none of the owner's children attended the closing. Our last closing was 4 years ago and it was all done with checks - not electronically.

My brother and I also sold my father's house in February 2020 as part of his estate and we received a check at closing.

[cosmowife]

I think I recall receiving a check from the title company, not the buyer.

[idahome]

The title company will wire the funds to the account your mom directed them to use once all fees on your mom’s side are deducted from the proceeds. Congrats to your mom!

[puppylove64]

We always do closings at attorney’s offices. The attorney wires or cuts a check to you at closing.

[Cappy]

I'm guessing the title company because before they go cutting a check to her they need to ensure there are no liens/encumbrances on the property.

[imojoebunny]

We always use a closing attorney and they take care of the disbursements, and verify the funds. It is required by law to use an attorney here, and I think it is one of our better laws. Some states use a title company.

[runnergirl]

We got a check from the title company a few days after closing. They handled payment of realtors fees, local excise taxes, etc. and then cut us the check at the end. We did know at closing what that amount would be, it just took a few days to get the actual check.

[macmars45]

H and I just sold our (not paid off) TH last month. The title company got our bank account info from us and deposited the amount due to us. I imagine it would be the same with a paid off house.

[Roc A Bee]

I made money from selling a house (I didn’t own it). The title company asked if I wanted it wired or a check. I picked up a check because they said it would be faster. I just deposited, but due to the amount, the funds were held for like a week or so.