How Do I Send or Receive Closing Money Safely?

Never act on wiring instructions that arrive by email without calling to confirm them first. Call your attorney at a number you already had, not one in the email. Criminals watch real estate deals, copy the look of real emails, and send "updated" instructions right before closing. Once the money is wired, getting it back is hard and often impossible.

How does the scam usually work?

1. Someone gets into an email account on the deal: an agent's, an attorney's, a buyer's or a seller's.
2. They wait until close to closing, when everyone is rushing.
3. They send a believable email: same names, same signature, slightly different address, "please use these new instructions."
4. The money goes to their account instead of the attorney's.

What should buyers do?

• Get wiring instructions only from your closing attorney, and confirm them by phone at a number you found yourself.
• Treat any change as fraud until proven otherwise. Real attorneys almost never change their wiring instructions mid-deal.
• Call after you send to confirm the money arrived.
• Ask about a certified bank check if wiring makes you uneasy. Your attorney will tell you what they accept.

What should sellers do?

• Give your bank instructions on bank letterhead or the attorney's form, through the attorney's secure method. Don't email account numbers.
• Know the cutoff. Many attorneys want wire instructions a few business days early, and some set a hard 48-hour cutoff. Miss it and you'll get a check.
• Expect a wire fee. It's usually modest and shows on your settlement statement.

What do I do on my side?

I never send wiring instructions, and I tell every client that at the start. If an email that looks like mine ever asks you to send money somewhere, it isn't from me. Call me.

Questions people actually ask.

What if I already wired money to the wrong account?

Call your bank right away and ask them to recall the wire, then call your attorney. Report it to the FBI at ic3.gov. Speed matters.

Is a phone number in the email signature safe to call?

No. Use a number from the attorney's website or a document you received earlier in the deal.

Can my agent hold my deposit?

In Massachusetts the deposit is usually held in escrow by the listing brokerage or an attorney, as the offer and purchase and sale agreement say. Ask before you send anything.

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This article is general information about Massachusetts real estate, not legal, tax, or financial advice. Every property and transaction is different. For advice on your situation, talk with me and, where appropriate, an attorney, lender, or tax professional.