Answer: Simply put, the Buyer did not perform in this situation. The Seller has every right to deny the Buyer possession of the home, regardless of the Buyer's intent to pay once the wire transfer actually comes in.
The Seller actually has the right to keep the Buyer's earnest money, and accept a backup offer, if there is one - in this case, because the Buyer did not produce good funds at closing, the Buyer is in breach of contract. Remember that the Seller is burdened with additional interest over the weekend since their Lender won't receive the payoff money until the Buyer's wire transfer is complete.
Good Funds: Closing funds where the checks have cleared (cashier's checks or certified checks).
1. Ensure that your REALTOR® understands the possible consequences of conducting a closing late on a Friday afternoon. Oftentimes, a Buyer's Lender is actually on the East Coast, and by the time the closing is underway, and the Title Company is actually looking for the funds, the Lender is closed for the entire weekend. If the closing would have began early in the morning, there may have been a chance to rectify the situation. Lesson learned here, ensure that all your ducks are in a row for a closing that does not leave all parties ample time to sort out a difficult situation.
2. Ensure that the Lender, or a representative of the Lender is present at the closing table. I have been a party to closings where having the Lender present was a passing thought, we shook hands and thanked each other. However, I have been at closings where if the Lender had not physically been present, all parties would have been looking down on a disaster - it's imperative that a Buyer's Lender have a physical presence at the closing table to ensure a smooth closing. Given the size of a typical real estate transaction in terms of monetary loan value, it's not asking much for a Buyer's Lender to make the trip to the closing table.
3. Your REALTOR® should be keeping all parties informed of what is happening through the transaction, one of their main responsibilities should be coordinating with the Lender to ensure that all parties are fully prepared to sit down at the closing table on the date of close and execute on the transaction - your REALTOR® plays an important role in coordinating with the Lender to ensure that the Lender is prepared to close.
Generally, closings on Friday's are a bad idea, title companies are oftentimes stretched for resources and time, and let's face it, everyone has their eyes on the weekend that is just ahead of them, including that person responsible for ordering good funds to be present at the closing table.
Team up with your REALTOR® to lock down the plan for closing day, all parties want to see the transaction close on the intended day and time, heed the above advice to ensure that you have good funds at closing.