Spotlight on the Ohio Good Funds Law

Posted on: March 20th, 2017 by Andrew Clark No Comments

Spotlight on the Ohio Good Funds Law

Changes go into effect April 6, 2017

Revisions have been made to Ohio’s Good Funds Law that go into effect on April 6, 2017. The Good Funds Law applies to escrow/title agents and prescribes what funds can be accepted for disbursement at a real estate closing.  The changes to the law can affect the way you do business and how you prepare your clients for closing.

The Ohio Land Title Association has prepared a series of FAQs to help in the understanding of how the changes to the law will affect real estate transactions.  With their permission, CABR will present a series of Q&A’s in the CABR News to help you prepare for the changes.

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Q: If all parties to a residential real property transaction agree and instruct that other forms of funds are acceptable in that transaction, can the escrow or closing agent follow this separate instruction?

A: No. The terms of the law must be strictly followed and does not permit the consumer, lender, or escrow or closing agent to alter the types of acceptable funds in a residential real property transaction.

Q: Is a check from another title company for greater than $1,000.00 is exempt from the rule. In other words, can a title company which takes seller’s proceeds for seller to buy new send those funds by check to the new title company.  In other words, are title company to title company check exempt regardless of the amount of the check?

A: The answer was no, we came to the conclusion that the statute is clear that title company checks are not exempt from the rule.

Q:  Doe sit apply to refinances?

A:  Yes.  It applies to all residential transactions.

Q:  Does it apply to case deals?

A:  Yes.  It applies to all residential transactions.

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For the complete FAQ compiled by Ohio Land Title Association on Ohio’s Good Funds Law changes, click here to be taken to their website.