How Should Sellers Verify Instructions for Receiving Sale Proceeds?
By JC Pacific Corp Published 2026-09-01 Last professionally reviewed: September 2026
Sellers should provide proceeds instructions through the settlement provider's approved secure process and independently verify any creation or change to those instructions.
What should sellers expect?
Escrow or title may require:
- Identity verification
- Written disbursement authorization
- Bank-account documentation
- Account-name matching
- Independent telephone verification
- Additional review for changed instructions
- Original or notarized documents in some circumstances
Exact procedures vary and should not be published in enough detail to help someone bypass them.
Which requests are suspicious?
- A demand to send proceeds to an unrelated third party
- A last-minute bank change
- A foreign account not previously disclosed
- A request to divide proceeds unexpectedly
- Refusal to complete identity verification
- Pressure to avoid telephone confirmation
- A message asking staff to ignore earlier instructions
Frequently Asked Questions
Can proceeds be sent to someone else?
Third-party disbursement requests may be restricted or require enhanced review and documentation.
Can sellers change banks before closing?
Possibly, but changes require secure verification.
Is a voided check enough to prove identity?
No single item proves the entire request is legitimate.
Educational information
Follow the settlement provider's current security and disbursement procedures.
Submit proceeds instructions early enough to resolve verification questions before closing day.
Wire-fraud warning
Always verify wire instructions by telephone using a known, independently confirmed number. Never rely on email instructions alone. If you suspect fraud, contact your bank, escrow, your agent and law enforcement immediately.
Read our wire-fraud protection guideRelated guides
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JC Pacific Corp is an Irvine-based Southern California brokerage helping buyers navigate offers, escrow, and financing. Tell us what you are looking for and we will point you to current options across the region.
A note on legal advice: These guides provide general, educational information about California real estate practice. They are not legal advice and do not create an attorney-client relationship. Mortgage information is general education, not individualized lending, tax or legal guidance. For advice about your specific offer, contract, closing or financing, consult a qualified California real estate attorney and a qualified mortgage professional.