How to Sign a Cashier's Check Over to Someone

A cashier's check is one that's guaranteed to be good and payable. There's no possibility of the check bouncing. The issuing bank makes that guarantee, and it's able to do so because the check is paid out of its own account, according to HelpWithMyBank.gov. The amount of the check is withdrawn from the buyer's checking account or savings account, then deposited into the bank's account to cover it. The check is issued under the bank's name.

Bank and credit union services want to be very sure that a cashier's check is cashed by the appropriate, intended party or deposited into a checking account or savings account with that party's consent. That can make signing one you've received over to someone else a bit challenging, but it's not impossible.

The process is basically the same as signing a personal check over to another individual, but you may find that both of you have to appear at the bank in person and provide the bank teller with authoritative ID, such as a current driver's license with a photograph. You might do well to go to the issuing bank. The name should appear on the front of the cashier's check. You might not have much luck trying to cash a cashier's check at a grocery store, a retail store or a check-cashing service.

First, endorse the cashier's check that you want to sign over. Sign the back of the check, making sure you do so in the same way it appears on the front of the cashier's check. Don't sign "Maryjo Green" if the check is made out to "Mary Jo Green." Your name must match in both places. Now write "pay to the order of" beneath your name and enter the name of the payee to whom you're giving the check under that. The recipient will sign their name beneath that line.

Huntington National Bank advises first calling the bank where the cashier's check will be cashed or deposited. Find out if it imposes any additional requirements. The bank might want both you and the recipient of the check to personally go to the bank and make the transaction together.

Some common questions about cashier's checks include:

Checks that are signed over to someone else are commonly referred to as "third-party" checks because three entities and/or individuals are involved: the one who paid for and had the bank issue the cashier's check, the payee to whom the cashier's check is made out, and the individual to whom it's being signed over. And yes, cashier's checks can be third-partied, but third-party cashier's checks aren't required to be approved by the paying bank. It can depend on the financial institution.

Greater Texas Credit Union advises calling the bank in advance to find out if both you and the individual whose name appears on the check must be present. Determine what type of ID will be required. You'll both probably have to provide ID because the bank wants to prevent potential scams.

The same rules for endorsement apply to any type of check. The individual to whom the check is written must sign, and the third party will have to endorse the check as well if it's being signed over to someone else.

The time it will take for a deposited third-party cashier's check to clear can depend on the banks that are involved, and on whether there are any issues with the check. According to the Washington State Department of Financial Institutions, the issuing bank can stop payment on a cashier's check under the terms of the Uniform Commercial Code if the check has been lost or reported stolen. This is intended to prevent check fraud and check scams. But HelpWithMyBank.gov indicates that the purchaser of a cashier's check can't do so.

Assuming this type of problem doesn't arise, the check should clear within one to two business days.