A cashier's check is a type of payment instrument issued by a bank, guaranteeing the funds are available. It is purchased by an individual or business, and the bank takes the money from the buyer's account to create the check. This makes cashier's checks a secure form of payment, often used for large transactions like real estate purchases. Unlike personal checks, which can bounce if there are insufficient funds, a cashier's check is backed by the bank's funds. This reliability makes it a preferred option for transactions where the seller wants assurance that the payment will clear, such as in real estate or automobile sales.