When Does the Seller Get Money After Closing? Learn How Soon You Can Expect To Get Paid

Selling a house can be a long process, and it makes sense that the seller would want to know when the seller gets money after closing – especially if those funds are being used to purchase a new home. Whether you’re selling your home in Kansas City, MO and looking to rent a home in Portland, OR or an apartment in Los Angeles, CA or you’re looking for your next home to buy, understanding when the seller gets paid after closing can help provide some peace of mind around knowing when to expect payment.

The short answer is that the seller can expect to get money typically 24-48 hours after closing, but this can extend to several days depending on certain factors of the closing process such as whether the funds were dispersed through a cashier’s check or wire transfer or whether it’s a wet or dry closing. In this Redfin article, explore what to expect during the closing process and when the seller can expect to receive their funds.

In this article:
What needs to be done before settlement
What you need to know about closing day
What role does an escrow officer play in fund disbursement?
When does the seller get paid after closing?
What happens if the buyer’s funds don’t clear?
The bottom line: When does the seller get money after closing?

What needs to be done before settlement

It typically takes between 30-60 days from accepting an offer on your home to closing a sale. This delay is the result of the due diligence period, where the buyer will conduct inspections and other research before actually signing any papers.

The steps of the due diligence period can include any of the following:

• Home inspection
• Pest inspection
• Appraisal
• Negotiation of closing costs
• Title search and title insurance
• Renegotiations (if applicable due to home inspection)

During this period before settlement, the buyer and seller are able to continue negotiations. For example, if the home inspection reveals extensive repairs, the buyer may be able to terminate the agreement due to a home inspection contingency. Alternatively, the seller may opt to lower the purchase price or conduct the repairs themselves before closing.

What to remember: After accepting an offer, the deal enters the due diligence period, where certain inspections and investigations are conducted before finalizing the sale.

What you need to know about closing day

Oftentimes, the settlement stage and closing day happen at the same time. Closing is when the deed or title is officially recorded with the county and the property changes hands. During this stage, there’s a lot of paperwork involved. 

To close, you’ll need to sign the documents below:

• The deed: Transfers ownership of the property to the buyer.
• House title: Denotes the ownership of the real estate.
• The bill of the sale: Confirms the sale and purchase of the property.
• Affidavit of title: Confirms you are the home’s legal owner and there are no liens or claims against the property.
• Closing disclosure: Outlines the terms of the sale, including all costs, fees, and payment schedules for both parties. 
• Loan payoff: Confirms the seller’s mortgage has been paid off from the proceeds of the sale.
• Transfer tax declarations: Documents any property taxes that are due (required in some states)

Although closing day can take a while, one way to speed up the closing process is to work with a top-tier agent like one of Redfin’s real estate agents. The cause of delays is usually the result of individuals not signing and reviewing the documents promptly. A good agent will stay on top of the real estate attorney and the buyer’s agent to ensure everything closes as smoothly as possible.

In a nutshell: Closing day involves a lot of paperwork. Be prepared to sign a lot of documents.

What role does an escrow officer play in fund disbursement?

You can call them an escrow officer, a closing agent, or a settlement agent, but the role is the same. An escrow officer will act as an impartial third party to facilitate the same of a property – which includes the disbursement of funds after the sale is finalized. 

Before the seller can get their money after closing, the escrow agent will need to use those funds to pay off any mortgage that exists on the seller’s property. After that, the funds are then used to pay any closing costs (real estate commissions, escrow fees, title insurance, etc.) before being issued to the seller.

TL;DR: The escrow officer makes sure all fees and outstanding charges are paid before the seller finally receives their cut.

When does the seller get paid after closing?

The seller will generally get paid 24-48 hours after closing, but it depends on how you choose to receive your funds and what your local laws are. Once the buyer and seller have settled, signed all documents, the deed has been recorded with the county, and all service providers and outstanding charges have been paid, the seller can then receive their money. 

Since there’s no clear answer for when the seller will receive their money, it’s best practice to budget extra time after closing before making any major purchases like a new property to ensure you have received the funds. 

Wire transfer or cashier’s check?

Typically, the sale of a home will be paid for through a cashier’s check or a wire transfer. A wire transfer can usually take 24-48 hours to process since it needs to be transferred to an escrow account and then to the seller’s account.

A cashier’s check will need to be deposited and cleared before the funds can be delivered, and a bank may end up holding your deposit for up to seven days. Although cashier’s checks take longer to deposit and clear, many real estate agents advise their clients to receive their money in this way due to the prevalence of wire fraud scams. 

How does wet closing or dry closing affect my sale?

Wet and dry are references to the ink on the documents. In wet states, you can receive your funds within a few hours as long as the proper documents are filed with the bank before they stop receiving new requests for the day. Wet is a reference to the ink still being wet on the page when you receive your funds.

While wet closing is required in most states, nine states allow dry closing. Dry closing allows there to be a gap between signing the paperwork and payment being initiated; however, all parties must agree to a dry closing beforehand. 

Dry closing is allowed in these nine states:

• Alaska
• Arizona
• California
• Hawaii
• Idaho
• Nevada
• New Mexico
• Oregon
• Washington

Short answer: The seller can generally expect to get their money in 24-48 hours, but it can take up to several days depending on certain circumstances.

What happens if the buyer’s funds don’t clear?

It’s not often that the buyer’s funds don’t clear, but it is a possibility. This is usually the result of an issue with financing or a delay with the wire transfer. Though this is rare, it can result in a delay of fund disbursement by a day or more. 

Should a delay occur, the closing agent will keep everyone informed about next steps. Most contracts have protections in place for sellers, so it’s something to be aware of but not to worry about.

In short: It’s rare that a buyer’s funds don’t clear, but it’s usually a result of an issue with financing or a delay with the wire transfer. It’s not a cause for concern, and most contracts have protections for the seller should something happen.

The bottom line: When does the seller get money after closing?

While most sellers can expect to receive their funds within 24 to 48 hours after closing, several factors — such as the type of closing, method of payment, and any last-minute delays — can impact the exact timing. 

Understanding the steps involved and working with a knowledgeable real estate agent and escrow officer can help ensure a smoother, more predictable transaction. With the right preparation, you’ll know what to expect and be ready to move forward with confidence after the sale.

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