It will be cashed before closing. It all depends on the seller. In my case I placed a bid on a foreclosure and handed my realtor $1000 check on 08/05. My realtor held the check for me. When he submitted my offer he made a copy and faxed it over to the seller'r realtor. My offer was accepted on 08/15 and then even after it being accepted, it still was not cashed. I received an head's up e-mail from my realtor in September that he was going to deliver the check to the seller. I hope this helps.
Mine cleared my account 3 dyas after opening escrow. Make sure that you have $ to cover it and do not ask for them to "hold" the check. They will consider the fact that you do not have the 100 ready to go as a sign that you are not ready to purchase the property.
