April 6: Important changes to Ohio Good Funds Law is significant change to all closings
Effective April 6, changes to Ohio’s Good Funds Law will require that all funds coming into and out of a title company trust account be wired funds with just two exceptions: (i) funds of $1,000 or less can be by personal check or cashier’s check and (ii) funds coming in from a Realtor’s escrow account (usually the earned money) are also permitted by check.
This change is significant in that if a buyer (or seller) is not prepared to pay their monies into a closing via wire, the closing could be delayed or the buyer (or seller) in placed breach of the contract. We have been informed that out-of-town banks with no Ohio presence may require the account holder to appear in person at their bank branch to initiate a wire, and thus a trip out of town can be necessitated if arrangements have not been made in advance.
These new rules appear to be a result of ramped-up, sophisticated and aggressive wire fraud problems associated with real estate closings, and the State of Ohio is working to assure good funds in accounts to send behind each closing.
Realtors, lenders, buyers and sellers are all advised to be aware of the new good funds requirements and to plan ahead to assure your closing is not interrupted. For additional information regarding Good Funds, please contact Ivy Pointe Title at firstname.lastname@example.org.