Certified Check

Mike Schneider

Mike Schneider

Pre-Flight
Gone West
Joined
Mar 16, 2005
Messages
70
Display Name
Display name:
Mike
When selling a plane that is going to be paid for with a certified check, what (if anything) does one need to do to verify that the check is legitimate?
Thanks. -- Mike
 
Last edited:
Mike Schneider said:
When selling a plane that is going to be paid for with a certified check, what (if anything) does one need to do to verify that the check is legitimate?
Thanks. -- Mike
Click to expand...

Mike, do you have an offer? I've been slobbering over the Maule, BUT...I'm not there yet.

Good luck with the sale if you are at that point. Escrow fees are cheap if you don't know the buyer.
 
Use a escrow service, a lawyer, or a bank. I would never accept any check from anybody on a transaction where I couldn't afford to lose the whole thing. And isn't that what an escrow service is for? They verify the funds for you before you trade the title.
 
Mike Schneider said:
When selling a plane that is going to be paid for with a certified check, what (if anything) does one need to do to verify that the check is legitimate?
Thanks. -- Mike
Click to expand...

I agree with what has been said Mike. Do you have a good local banker? Ask them how to verify and when funds could clear. In some cases, banks have cleared checks, then, when they weren't good, reversed the transaction. I prefer using wired funds. But, I sold a plane to someone I knew reasonably well, and the bank cleared their personal check.

Just don't let the person fly off with your plane when the funds can be called back for any reason. There are some fine points in how banks clear checks. I know of a case where a friend deposited a check and it was lost on the way to the Federal Reserve branch. The bank pointed out they weren't responsible even though he had a deposit slip! He confirmed they were correct!! Luckily, it had just been deposited in the wrong account and was later cleared.

If you don't know the person and even if I did know them and they didn't want to wait for the funds to clear, I'd use the escrow service (and I have done that for one plane I sold.)

Best,

Dave
 
Dave Siciliano said:
...SNIP... There are some fine points in how banks clear checks. I know of a case where a friend deposited a check and it was lost on the way to the Federal Reserve branch...SNIP...
Click to expand...
If you want to make a lot of money, be a bank, credit card, or insurance company. It is a license to print money. Remember, THEY WILL NEVER BE STIFFED ON A DEBT.
 
Mike, either use an escrow service or ask for a cashier's check/bank draft!

If the buyer trusts you, you can get a wire transfer of the funds directly into your account.

I can cut a piece of rubber to make a certified check in about 30 minutes.
 
While I agree with the escrow service suggestions the wire to your bank is OK as well. With a little preplanning before hand you can both be at the airport to make the delivery, him call his bank and have the wire made and have your bank call you when it hits and do the deal.

If you use cashier's check ot bank draft DO NOT trust the bank's phone number on the check. Look up the number and call it yourself to make sure it is valid.


bstratt said:
Mike, either use an escrow service or ask for a cashier's check/bank draft!

If the buyer trusts you, you can get a wire transfer of the funds directly into your account.

I can cut a piece of rubber to make a certified check in about 30 minutes.
Click to expand...
 
If you do a wire transfer be advised that they are not immediate. You'll need to have the buyer issue the transfer in the morning to make sure it hits your account sometime that day. This ain't PayPal. At least that's been my experience with wires.
 
Mike: please be very careful. As you know I am an attorney I also handle Real Estate Settlements where LARGE amounts of money are transferred through my Trust Account. Our practice is to insist on a Wire Transfer or at the very least a Bank/Cashier's check.
We NEVER distribute unitl we receive confirmation from my bank that the wire transfer has been Received, not pending but received. We only accept Bank checks from in state banks. Here are a few things you should know.

1) Certified checks are worthless as security. You can put a stop payment on a certified check. The ONLY thing a certified check tells you is that AT THE TIME THE CHECK WAS WRITTEN there was money in the account. The Payor could have drained the account since the check was written.

2)With a Bank or Cashier's check the bank is paying you and takes the funds out of the payors account to cover the check.

3) There are tons of counterfeit Bank and Certified Checks out there Thats why wire transfers are often safer. Make sure your bank notes on your account if you are to receive a wire transfer that the transfer cannot be reversed without your written permission.

4) Who ever said to use an Escrow service also gave very good advice. Check out AOPAs.

Best of Luck.
 
Last edited:
Adam, I did not get a PM. I haven't received a PM in months and I think my PM isn't working. Mike
 
The provision of a Fed Reference # by the sending bank enables faster verification of the validity of the transfer.
 
You must log in or register to reply here.
Back
Top