Dec232025
Real Estate Q&A Series

What steps ensure the sale proceeds are safely wired into my account after closing? – North Carolina

Short Answer

In North Carolina, the safest way to protect sale proceeds is to treat wiring instructions as high-risk information and verify them only through trusted, independently confirmed channels (not email). At closing, the settlement agent must follow the approved settlement statement and generally cannot disburse funds until required documents are recorded and the closing money is in the settlement agent’s trust/escrow account in a permitted form. Practical protection comes from (1) locking down how wiring instructions will be provided and confirmed, and (2) confirming the exact account details on the final settlement statement before the wire is sent.

Understanding the Problem

In a North Carolina home sale, a seller can ask: can the settlement agent wire net sale proceeds to a bank account after closing, and what steps reduce the risk that proceeds are sent to the wrong account? The key issue is how wiring instructions are delivered and confirmed when there has been a prior email or phone compromise and there is concern that someone involved in the transaction may have access to messages. The timing trigger is the closing and immediate post-closing disbursement period when documents are recorded and funds are released.

Apply the Law

North Carolina closings typically run through a settlement agent (often a closing attorney) who receives and disburses “closing funds” from a trust or escrow account. State law requires the settlement agent to record the deed and related documents required to be recorded at settlement and, as a general rule, prohibits disbursing closing funds until the settlement agent verifies that the closing funds used for disbursement are deposited in the settlement agent’s trust/escrow account in one of the allowed forms. The settlement agent must account for and pay closing funds to the parties or entities identified for payment under the settlement agreement approved in the transaction, which is commonly reflected in the final settlement statement.

Key Requirements

  • Disbursement follows the approved settlement statement: The settlement agent disburses the seller’s net proceeds to the payee and destination identified in the settlement paperwork approved for the closing.
  • “Good funds” and verification before disbursement: The settlement agent generally must confirm that the money funding disbursements is actually deposited into the trust/escrow account in a permitted form, and many disbursements wait until recording is confirmed.
  • Recording first, then most disbursements: The settlement agent must cause recordation of the deed and other required documents and generally cannot release most closing funds until recording is completed.

What the Statutes Say

Analysis

Apply the Rule to the Facts: Here, the seller has a scheduled North Carolina closing and has already experienced an email/phone compromise and changed contact information. Because the settlement agent must disburse the seller’s proceeds according to the approved settlement paperwork, the safest approach is to ensure the settlement paperwork contains the correct payee and bank details and to prevent anyone from changing those details through compromised email or “last-minute” messages. The practical goal is to create a single, verified method for confirming wiring instructions and to treat any change request as suspicious until verified through independent contact.

Process & Timing

  1. Who provides wire instructions: The seller. Where: Directly to the settlement agent handling the closing in North Carolina (often through the closing attorney’s office). What: Written wire instructions (bank name, routing number, account number, account type, beneficiary name) plus a signed direction to wire if requested by the settlement agent. When: Provide instructions early (several days before closing) and treat any request to “update” instructions close to closing as high-risk.
  2. Verification before the wire: The settlement agent should confirm wiring instructions using a callback or live verification to a phone number obtained independently (for example, from a trusted prior document, an in-person meeting, or a number the seller provided to the settlement agent before any compromise). The seller should also confirm with the bank that the account can receive a wire and confirm any bank-specific requirements (intermediary bank, beneficiary address, or reference line).
  3. Closing and disbursement: The settlement agent causes recordation of the deed and related documents and generally disburses only after verifying good funds and confirming recording. The seller should review the final settlement statement at closing to confirm (a) the net amount, (b) the payee name on the wire, and (c) the last four digits of the destination account if shown or otherwise confirmed in writing with the settlement agent.

Exceptions & Pitfalls

  • Email-only changes: A common fraud pattern is an email that looks like it came from the seller or someone on the transaction asking the settlement agent to “update wire instructions.” A safer practice is to refuse to change instructions based on email alone and require verified live confirmation.
  • Relying on inbound calls or texts: Caller ID can be spoofed. Verification works best when the settlement agent calls back a known, independently confirmed number (not one provided in a suspicious message).
  • Mismatched beneficiary name: If the beneficiary name on the wire does not match the seller name on the settlement paperwork (or an approved entity name), the settlement agent may pause the wire. Resolve naming issues before closing day.
  • Bank holds and cutoff times: Even when the settlement agent sends the wire correctly, bank cutoff times and holds can delay availability. Asking the settlement agent when wires are typically released (same day vs. next business day) avoids surprise.
  • Compromised devices/accounts: If a phone or email account was compromised, using that same device/account to transmit “new” instructions can recreate the risk. A safer practice is to deliver instructions in person or through a secure portal, then verify by callback.

Conclusion

In North Carolina, the settlement agent disburses sale proceeds according to the approved settlement statement and generally only after verifying good funds and completing required recording. The safest way to protect a seller’s wire is to lock down wiring instructions early, confirm them by independent callback (not email), and confirm the final payee/account details on the closing paperwork before funds are sent. Next step: provide written wiring instructions to the settlement agent several days before closing and require live verification before any wire is initiated.

Talk to a Real Estate Attorney

If a North Carolina closing involves prior email or phone compromise and there is concern about wire fraud, experienced attorneys can help set a safe verification protocol with the settlement agent and keep the disbursement process on track. Call us today at (919) 341-7055.

Disclaimer: This article provides general information about North Carolina law based on the single question stated above. It is not legal advice for your specific situation and does not create an attorney-client relationship. Laws, procedures, and local practice can change and may vary by county. If you have a deadline, act promptly and speak with a licensed North Carolina attorney.

Category: Real Estate Q&A Series

Author: jpierce

Attorney Jared Pierce is the founder of Pierce Law Group in Raleigh, North Carolina, a firm he established with a dedicated focus on probate administration and estate planning across North Carolina. Born and raised in the Republic of South Africa, Jared moved to Durham with his family in 2001, bringing with him a rich cultural background and a distinctive accent that often serves as a conversation starter.