How Changes in Ohio’s Good Funds Law Could Affect You

The Ohio Good Funds law has some changes that go into effect on April 6th this year. Here's what those changes could mean to you.

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What is the Ohio Good Funds law? How has it changed recently? How does it affect you if you're involved in a real estate transaction?

Ohio's had a good funds law on the books since 1996, but April 6th of this year, it'll be updated to keep up with the digital world we all now live in. The change will adjust how you bring funds to a closing in a real estate transaction.

The Ohio Good Funds law was created to ensure that the funds used for a real estate closing are deposited and available for withdrawal at the time of disbursement. The change in the law aims to not only ensure that funds are available at closing, but also to prevent fraud.

The change in this law should help prevent fraud.

In the past, it was customary to get a cashier's check to get the necessary funds to close. Now in most cases, they must be wired from your bank. In addition, any cash or checks used at settlement cannot total more than $1,000 unless they're from a real estate brokerage as earnest money.

If you have any questions about the good funds law or how it could affect you, give me a call or send me an email. I'd be happy to help you in any way that I can.