Posted by sn/oh on 5/1/07 2:29pm
Msg #188293

Can we discuss post #176981 in a little more

detail? Now, I have recently picked up nearly $100,000.00 in cashier's checks. Although the checks were made out to the title company, how can you really protect yourself from loss or theft on the other end? Is there some kind of bond available to cover being a courier of large amounts of money in checks?

Reply by Charm_AL on 5/1/07 2:32pm
Msg #188294

just make a copy of the check(s) for your own records and record such in comments in your journel. I hate to say it, but you really do not have to be a rocket scientist, ya know?

Reply by sn/oh on 5/1/07 2:35pm
Msg #188295

What does a rocket scientist have to do with someone stealing a check at the other end and saying they never received it. Making copies of the check, though, is what I will begin doing. Thanks for the suggestion

Reply by Charm_AL on 5/1/07 2:39pm
Msg #188296

it means many of us go off the deep end trying to 'project'.
It's really very simple, make a copy, record it and once FedEx or the brown pick it up, it's OUT of your hands.
Sorry to be so sarcastic, but my Father raised me this way It's all his fault.

Reply by sn/oh on 5/1/07 2:43pm
Msg #188297

I'm not offended :-}

Reply by Charm_AL on 5/1/07 2:46pm
Msg #188299

;)..... n/m

Reply by Charles_Ca on 5/1/07 3:15pm
Msg #188301

Checks are a relatively secure instrument compared to others

Especially if the check is made out to escrow or title. I suspect that most banks would not accept a signature on the back of an escrow check. I don't really think that you have a lot of risk to worry about. There is always a paper trail. If the Bo says that they gave you a check and you cashed it there would be proof that it was cashed if the check is lost then all they need to do is re-issue and put a stop pyament on the original check. I think that sometimes people tend to over-intellectualize some types of situations. Its not bad to think about but just consder the various scenarios and see if they are plausible.

Reply by sn/oh on 5/1/07 3:29pm
Msg #188304

Re: Checks are a relatively secure instrument compared to others

That answers my other question, Charles. Because some suggested having the buyer endorse the check on the back but I woud think that could give way to forgery a lot easier.

Reply by Charles_Ca on 5/1/07 4:04pm
Msg #188306

Once endorsed by the payee the check becomes a

negotiable instrument and can be used like cash. Fewer people acccept third party checks these days but they fail to realize that they become a "holder in due course" and that has some serious protections with it. Frank'ly I wouldn't touch an endorsed check being sent to someone else in the course of this business, that has a huge potential downside.

Reply by Joan_OH on 5/1/07 4:21pm
Msg #188310

Re: Checks are a relatively secure instrument compared to others

Sharon.

It may have been my message that confused you.

Every day, I receive checks (rather large ones) made out to the title company. I ALWAYS staple the check to the HUD in front of the buyers and note on my cover sheet the check amount and that it is stapled to the HUD. This protects me in that if someone loses it at title, I tell them to look at the top right hand corner of the HUD. I ask them if they see staple marks. That tells them it's probably in the copy room. :-)

Second issue I run across is the buyer is not told who to have the check made out to so they have it made out to themselves. Obviously, the title company cannot cash it unless it is endorsed. Again, Obviously, I don't want to accept a check endorsed, because quite literally, once it's endorsed, anyone can cash it and I'm not going to be accused should it wind up in the copy room under the scanning machine.

I instruct the buyer, when endorsing it to sign it, "Joe Schmoe, make payable to XYZ Title Company." That ensures I can't cash it, or the copy room clerk or even the FedEx guy should it turn up missing.

Again, I use a cover sheet and note all of this going back to title.

Joan-OH

Reply by sn/oh on 5/1/07 4:35pm
Msg #188314

Re: Checks are a relatively secure instrument compared to others

OK! I understand now. That's why you kept saying to WDMD to make sure the endorsement also states "Make payable to xyz company," because WDMD said that they would take an endorsed check.

Got it!

Thanks

Sharon

Reply by Gerry_VT on 5/1/07 11:07pm
Msg #188376

Endorsement

I believe when people say that an endorsement should be made payable to a title company, they are just giving a general description of what to do, not to use those words. I believe the normal way to carry that out is to write on the back of the check in the area reserved for the endorsement, "pay to the order of XYZ Title Co." and then the signature of the person endorsing the check.