That’s right. As much as we think certified cheques and bank drafts are guaranteed funds, they are NOT guaranteed and can be reversed.
That is a little known and very scary thought for everyone (including lawyers who deal with certified cheques and bank drafts every day).
Believe it or not, lawyers who accept certified cheques and bank drafts must hold the funds 8 business days before releasing same if they want coverage from their professional insurance provider (LawPro), but few do that and few insist on the only method of ensuring the cheque or draft do not bounce. We are aware of a law firm that accepted certified funds for a closing which was later reversed. They do not accept bank drafts or certified cheques.
The only way to guarantee that funds are in your account to stay is to insist on cash (which has its own problems) or, more practically, a bank wire using the LVT (large value transfer system). Once wired funds hit your account, the funds are there to stay and cannot be reversed.
Uncertified cheques and e-transfer (although seemingly instantaneous) can be reversed at a later time.