Freedom Title Transaction Policies for Real Estate Agents

Freedom handles millions of dollars in real estate settlements each month. The primary goal is to preserve the integrity of escrow accounts. Our funding policies protect the money while ensuring a smooth closing.

“I do a really good job at doing the best I can do to be a resource for the agent.”
– Ryan Kerner, President and General Counsel of Freedom Title

If you are required to bring money to a closing or receive money after a closing, here are the transaction requirements and procedures you’ll want to keep in mind:

Disbursements cannot occur until all the money necessary to fund the file is in Freedom Title’s escrow account—at a minimum in the form of Good Funds as defined by local law. Wire Transfer is the preferred method of receiving funds necessary to close. This is the safest way for all parties to transfer funds in the large amounts required.

Cashier’s checks are still accepted by Freedom Title, although many companies in the industry no longer accept them at all because they are risky for both the issuer and the company accepting them. Cashier’s checks are subject to verification with the issuing bank which may delay disbursement. Intra-bank transfers from a bank account to Freedom’s Escrow Account do not result in immediately collectible funds and may result in a hold of 24 hours or longer until verified, so they are not a good alternative to wiring funds. Personal Checks cannot be accepted except for minimal amounts of $100.00 or less which might be needed to balance a file when adjustments are made after closing numbers are issued.

Earnest Money Deposits may be made by personal or company check, so long as there is sufficient time before the scheduled closing for the check to be “collected” in the account. Allow two weeks between deposit and disbursement in most cases. For closings occurring sooner than that, please bring cashiers checks or wire the funds.

Proceeds disbursements after closing are typically made with a check from our escrow account to the Sellers. Since Freedom Title uses a “positive pay” system, escrow checks immediately taken to the bank for cashing or deposit may be subject to manual verification at the bank. The positive pay feature lets our bank know that the check being presented is validly issued to the party payee in the amount shown on its face. The verification is done automatically periodically during the day, and presentation between automatic uploads will require manual verification, which only takes a few minutes. Proceeds can be wired. Please ask the closer to do so and provide a voided check or deposit slip, and sign the provided authorization to wire.
Proceeds cannot be disbursed to third parties. Federal law requires disbursements be made only to the parties on the settlement statement. These procedures are designed to protect the funds in the escrow accounts of all the parties.