Cashier’s Check
A Cashier’s Check is a type of Check that is guaranteed by a bank. It is drawn on the bank’s own funds, rather than the funds of an individual account holder. The bank issues the Check after the buyer pays the amount in cash or has the funds debited from their account. Cashier’s Checks are often used for large transactions where the seller wants assurance that the Check is valid and will not bounce.
Examples:
- A homebuyer uses a cashier’s Check to make a down payment on a house, ensuring the seller that the funds are secure.
- A person purchases a used car from a private seller and pays with a cashier’s Check to avoid the risk of personal Checks bEINg insufficient.
Cases:
- In a real estate transaction, a buyer provides a cashier’s Check for Earnest Money to show serious intent to purchase.
- During an auction, bidders may be required to submit a cashier’s Check as part of their registration to ensure they can pay for items won.