How long or the The Seller to Get Money After Closing? (2026)

February 8, 2026 by Georges Benoliel

Congrats! You’ve found a buyer, signed a binding sale agreement, and are just days from closing. But when does the seller actually receive the funds? The timing varies. It depends on whether the buyer pays all cash (which typically happens sooner) or uses financing (which could take longer). When Does The Seller Get Money After Closing?

Also, it depends on whether you live in a wet-funding (closer to closing) or dry-funding (later) state.

All cash vs mortgage closings

All cash closing

In an all-cash closing, the seller generally gets the full net proceeds (after deductions like closing costs, mortgage payoff, and broker commissions) at closing.

If attending in person, the seller typically receives one or more certified checks or can opt to receive the funds via wire transfer, often on the same day.
For remote closings, such as those involving a power of attorney, the seller’s net proceeds are typically sent via wire transfer after the closing agent or attorney processes them, which may take a few days if additional steps, such as cashing a cashier’s check, are involved.

Mortgage closing

In mortgage closings, the timing of the seller’s funds disbursement can be more complex, especially if last-minute issues arise during final mortgage underwriting. Since the mortgage lender must approve disbursement, funds are usually only released after signing all paperwork, funding the loan, and recording the transaction.

If everything proceeds smoothly, the seller can expect to receive a certified check or wire transfer for their net proceeds at closing. However, last-minute title issues or errors in closing documents can cause delays.

Once the closing is complete, the seller should receive their net proceeds promptly, as in an all-cash closing.

Wet funding vs dry funding

Wet-funding and dry-funding states differ in how they handle the closing and financing of real estate deals. In wet-funding states, a transaction is closed and funded once all parties have signed the required documents and transferred the funds to the intended recipients.

The term “wet funding” refers to funding that occurs quickly after closing, while the documents are still fresh.

In dry-funding states, a real estate deal is closed once all parties sign the necessary documents, and funds are typically transferred the next business day.

The term ‘dry funding’ originates from the idea that the signatures on the documents are dry by the time the funds are actually transferred.

Wet Funding States

In wet-funding states, funds are typically disbursed at closing after all parties have signed the necessary documents. This process involves transferring the buyer’s funds to the seller and the lender’s funds to the lender at closing.

It is essential that all involved have their funds ready and accessible at this time to facilitate a smooth deal.

Wet funding states include Alaska, Arizona, California, Hawaii, Idaho, Nevada, New Mexico, Oregon, and Washington, which together roughly represent the West Coast and western states relative to the rest of the country.

Dry Funding States

In dry-funding states, a transaction is considered closed once all parties have signed the required documents. However, funds are usually disbursed later, typically the next business day. Typically, the buyer’s funds are wired to an escrow account managed by a neutral third party, who verifies them and then releases them to the relevant parties.

Examples of dry-funding states include Texas, New York, Florida, and Illinois, as well as other states outside the previously mentioned West Coast states.

The Difference Between Wet and Dry Funding

The key distinction between wet and dry funding lies in when the funds are disbursed. In wet-funding states, funds are released at closing, requiring all parties to have their funds ready at that time. Conversely, in dry-funding states, disbursement occurs later, giving parties more time to prepare their funds.

Additionally, wet funding carries a higher risk of fraud or errors because funds are transferred immediately, often without extensive verification. Dry funding reduces this risk because funds are held in escrow until verification and release.

As buyers and sellers in New York and Florida can confirm, wire fraud is a concern with immediate disbursements, prompting thorough verification of wire instructions by closing agents and attorneys.

Who pays the seller at closing?

The seller receives payment from the buyer and/or the buyer’s lender through an escrow account managed by the title company or closing attorney. Payment sources vary by transaction type.

In a cash deal, the buyer typically pays the full amount at closing. In a mortgage deal, the lender funds the loan by transferring the money into an escrow account before closing. The escrow account is overseen by either the seller’s or the closing attorney, based on state requirements regarding the need for separate attorneys.

The escrow account may be funded through the buyer’s contract or earnest deposit, mortgage funds, and additional cash needed at closing. After all documents are signed and the closing is complete, the escrow agent disburses the funds to the relevant parties, such as the seller, real estate brokers, and the seller’s lender for payoff.

Is a check or a wire transfer better for getting money after closing?

You can use both checks and wire transfers to transfer net proceeds after a real estate closing, but wire transfers are generally the better option for sellers seeking quick and secure payments. Here are some reasons why wire transfers are often preferred:

Speed: They are usually faster than checks, which can take days to clear. Funds via wire are typically available within hours.
Security: Wire transfers are more secure than checks, reducing the risk of fraud, theft, or loss.
Convenience: Initiating and completing wire transfers can be done online, avoiding the need for physical document exchange.
Large transactions: For big sums, wire transfers provide a quick and secure method. However, wire transfers may involve additional fees, and the seller might need to provide specific bank information to the buyer.

In person, a seller might receive a certified check or checks for their net proceeds.

Some sellers prefer certified or bank checks to eliminate concerns about wire fraud or funds being transferred to the wrong account. They might also feel more in control by depositing the check in person at the bank, ensuring there are no errors.

If choosing this option, be careful not to lose or damage the check. Losing a certified check can delay closing because the closing agent or attorney must cancel it, which may require a declaration of loss and up to 90 days to obtain a replacement.

Tags: Selling in NYC

Written By: Georges Benoliel

Georges has been working in Wall Street for the last 16 years trading derivatives with hedge funds. He has been an active real estate investor for over a decade. Georges graduated from HEC Business School in Paris and holds a master in Finance from ESADE Barcelona.

The Nest

NestApple's Real Estate Blog