A wire transfer is an electronic transfer of funds from one bank account to another, typically completed within the same business day. In real estate closings, wire transfers are the standard method for moving large sums of money because they are faster, more secure, and more reliable than checks for significant amounts. The buyer wires their cash to close to the title company's escrow account, and after closing, the title company wires proceeds to the seller and payoffs to existing lenders.
The wire transfer process involves the sender instructing their bank to transfer a specific amount to a specific account at another bank. The sender provides the recipient's bank name, routing number (ABA number), account number, and account name. For domestic wires, the transfer typically takes 1 to 4 hours during business hours. International wires may take 1 to 3 business days. Most banks charge a fee for outgoing wires ($25 to $50 is typical), while incoming wire fees vary.
In a real estate closing, wire transfers flow in multiple directions. Before closing, the buyer wires their cash to close to the title company's escrow account. The lender wires the loan funds to the same account. After closing and recording, the title company disburses funds via wire: the seller's existing mortgage is paid off, real estate commissions are distributed, and the seller receives their net proceeds. All wires must match the closing disclosure exactly.
The most critical concern with wire transfers in real estate is wire fraud. Criminals target real estate transactions because they involve large, predictable wire transfers with known timelines. The golden rule: ALWAYS verify wire instructions through a secure channel before sending any funds. Call the title company at a known phone number — do not rely on numbers provided in emails. Never wire money based solely on emailed instructions.
At Beycome Title, we provide wire instructions exclusively through our secure online portal. We encourage every client to verify instructions by phone before wiring. Our closing team sends advance notice of the expected cash-to-close amount so buyers can prepare funds in advance — avoiding last-minute rushes that make people more vulnerable to fraud. Get your free closing estimate.