Frequently Asked Questions

Click on the question and the answer will drop down below the question.

Does the law only regulate funds collected from the consumer (buyer/borrower/seller)?

Is it permissible to use cash over $1,000 if it is deposited in the escrow account of the closing agent in advance of closing?

Does an “internal transfer” of funds from one account to another at the same institution qualify as “electronically transferred fund” under the law?

If the buyer needs to bring $1,200 to close, is it acceptable if they bring a $1,000 cashier’s check and $200 in cash?

If the buyer has given the real estate broker $2,000 in earnest money, and the broker brings these funds to closing, can they be used?

Can an escrow or closing agent accept a cashier’s or certified check over $1,000 if it is deposited in time to “clear” the bank before disbursement?

If the buyer needs to bring $1,500 to closing and has given the real estate broker $1,000 in earnest money, can the buyer use the earnest money and bring the difference in the form of a personal check?

Is the law only applicable to residential transactions?

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

Is a check from another title company for great than $1,000.—exempt from the rule. In other words, can a title company which takes seller’s proceeds for the seller to buy new send those funds by check to the new title company. In other words, our title company to title company checks exempt regardless of the amount of the check?

Does the Good Funds statute apply to refinances?

Does it apply to cash deals?

What about a bank funding into a bank account, for instance, a mortgage lender that funds their refinances into the Escrow Account of the Title Agency that is an IOTA Account set up at the same bank.

With the increase in wire fraud, doesn’t this make it riskier for the consumer?

Is the law applicable to only residential transactions?

Does the new law apply to escrow funds pertaining to out of state transactions?

Does the statute totally prohibit the taking of all but the enumerated checks or can we take checks as long as no disbursement is made from the escrow account until that check has cleared, in other words, if an earnest money deposit of $10,000 in check form is received but the transaction is not closing for 60 days, and there will be no disbursement on that file for 60 days, can that $10,000 check be accepted?

How does this affect “back-to-back” closings in round-table areas?

*ORC 1349.20-1349.22 and the changes to ORC 1349.21 effective April 6, 2017