The Good Funds Law and Real Estate Closings
The Good Funds Law (O.R.C. Section 1349.21) was amended on April 6, 2017 then amended again on September 9, 2017 to require tighter controls on transactions involving the sale, purchase, or refinance of of residential real estate.
This law, in effect, will act to eliminate the use of cashiers checks for the purchase of residential real estate and instead require the use of an electronic wire transfer. At first the law required a wire transfer for any amount that exceeded $1,000 but was later amended to $10,0000. Cash, personal checks, certified checks, official checks, or money orders are still acceptable for expenses up to and including $10,000.00. Beyond $10,000.00, however, no checks in any combination can be used to purchase residential real estate. Additionally, the funds used for purchase must be wired to the title company prior to the scheduled closing so that, at closing, the funds are immediately available.