January 2023 Newsblog

A Happy 2023 To All!

And to start the new year out with a bang, Viva Escrow is announcing that we will be relocating our office, effective date January 17, 2023, to the following location:

60 Alta Street, Suite 102, Arcadia, CA 91006

All emails, phone numbers, fax numbers will remain the same. We appreciate your patronage and will keep you updated if the actual relocation date is changed.

(Real questions emailed/called in to us)


Buyer sent a Cashier’s Check for an initial good faith deposit in a sale transaction held in New York. Seller lives out of the country and her New York attorney, acting as the escrow agent,  accepted the Cashiers Check and sent it via FedEx to the Seller’s bank in New Jersey for deposit. 

The FedEx envelope got lost. Seller’s attorney asked Buyer to put a stop payment and reissue the Cashiers Check. Unfortunately, the Buyer’s bank said the funds have to be frozen 90 days before a new check can be re-issued. 

After the 90 days passed and the Buyer could get a new check he decided that he was unwilling to issue the check and also asked the Seller’s attorney to stop bothering him and his bank. Now the Buyer has the property and the Seller is missing the initial good faith deposit. The Seller’s attorney is filing a lawsuit against the Buyer, but what else can the Seller do?


Goodness. Many issues to address in this scenario.

First of all, in California, all funds should be deposited and issued through the escrow company. Only in special circumstances would there be a payment of funds from Buyer directly to Seller. If a check to the Seller was lost, the escrow company would be responsible to place a stop payment and reissue. That is much easier than asking the Buyer to go through the re-issuance process.

Secondly, if there was a case in which the Buyer paid the Seller directly, we would never close the escrow without confirming that the Seller actually received the money and cashed it. Parties also need to consider that there is a hold time at the bank once a cashier’s check is deposited. The funds are not “available on demand”.

Thirdly,  it is a rather complicated and time defeating process in the event a cashier’s check is lost and had to be replaced.  Affidavits have to be signed and notarized by all parties involved; the bank can hold up the funds for 90 business days before they will allow a new check on those funds to be reissued. So that is pretty painful.

Fourthly, due to these conditions escrow companies prefer not to issue cashier’s checks, but will wire the funds instead. Wired funds are immediately available upon receipt at the bank and there is no wait time to use. 

Back to the client’s question on what can be done, unfortunately, if the Buyer refuses to honor their contract and re-send Seller the missing funds, I think the Seller has no recourse but to ask his attorney to file a lawsuit.


Cashiers checks are like regular checks. They all have to be handled physically and there is a clearing time for both. But, while it is easy to put a stop payment on a regular check to be re-issued quickly, it is not so for a cashier’s check. If there was a choice of cashier’s check or wire, I would highly recommend having the funds wired. The recipient gets it almost immediately and it can be used immediately. If the amount is large, then it would definitely be advantageous to wire.


~ Video of the Month ~ 
Ever wonder how product ads are made to whet your desire to buy? 


~ Quote of the Month ~ 

To Volodymyr Zelensky and the people of Ukraine 

~ There are no great people in this world, only great challenges
 which ordinary people rise to meet ~

~ William Frederick Halsey, Jr. Military officer (1882 – 1959) ~



My YouTube Offering for the Month

Bought or buying a new home? Besides regular taxes, there are supplement taxes!


You Have Questions? We Have Answers!

“Escrow is my FOREMOST language!”

Advance Disclosure:
The opinions expressed in this blog are solely the author’s. 
Your comments and viewpoints are always welcome.
Info @ VivaEscrow.com