I was wondering if it is normal for a bank to put a delay on a check I deposit that is drawn on a title company? I can understand that they would want to on a check written by an individual.
Although a title company's check ought to be good, things can happen, and a bank is entitled to delay availability on such a check. A delay to the second or fifth business day following deposit, depending on where the check is payable and where it's deposited, could be considered routine. A delay beyond the first business day (one calendar week) should be the exception, but is not unheard of. In most cases, and certainly if the delay is longer than to the fifth business day, the bank should provide a notice giving the date you'll be able to reach your funds and delays longer than five days, the reason for the delay.
Do you know if someone actually looked at the check before the hold was placed? Sometimes holds are placed strictly by rote -- if the routing number on the check is that or that, it's a two-day hold; if it's anything else, it's five days. If you took the deposit to a manager, pointed out the nature of the check, would he have permitted the check to be deposited without a hold?
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Although a title company's check ought to be good, things can happen, and a bank is entitled to delay availability on such a check. A delay to the second or fifth business day following deposit, depending on where the check is payable and where it's deposited, could be considered routine. A delay beyond the first business day (one calendar week) should be the exception, but is not unheard of. In most cases, and certainly if the delay is longer than to the fifth business day, the bank should provide a notice giving the date you'll be able to reach your funds and delays longer than five days, the reason for the delay. 