West Hamilton, Ohio
35 North D Street
Hamilton, OH 45013
(513) 863-7600

A Guide to Ohio's Good Funds Law for Closing on a Home September 16, 2019

West Hamilton, Hamilton
A Guide to Ohio's Good Funds Law for Closing on a Home, Hamilton, Ohio

The last thing a homebuyer or seller wants to deal with is not being able to close the deal due to fraudulent activity. Unfortunately, the mismanagement of closing costs and down payment monies can stop a sale in its tracks. The state of Ohio has the Good Funds Law on the books to help combat shady residential real estate transactions. Here is a helpful guide on the mandate, what it covers, and how it affects buyers and sellers.

Purpose of the Good Funds Law 

The Good Funds Law helps prevent wire fraud and safeguards closing costs and down payment monies kept in an escrow account until the title company disburses the funds. In the past, fraudulent wiring instructions would steer funds to accounts not intended for closing costs and down payment monies. The law provides extra protections to stop criminal activity by verifying wiring instructions through written documentation. The account and contact information is then double-checked before the funds are wired to or from an escrow account. 

What the Law Covers

closing costsThe law, enacted in April 2017, requires funds of $10,000 or more to be electronically transferred to the title company before closing on a real estate property purchase. Closing funds ranging from $1,000 to $10,000 can still be accepted in the form of cash, certified checks, money orders, and official bank checks. These funds must be drawn from an existing account at a federally insured bank, credit union, savings bank, or savings and loan association. The title agent must receive closing costs and down payment monies before disbursement.

How the Law Affects Buyers & Sellers

In real estate transactions, buyers aren’t permitted to bring a certified check for closing costs and down payment monies if the amount is more than $10,000. If sellers are waiting on funds from a first closing transaction to settle a second closing, they may have to put the latter closing on hold until the funds are electronically wired to the title company.


For more than 30 years, All Points Title & Closing, Inc. in Hamilton, OH, has provided professional service involving residential real estate transactions and closing costs. The team of licensed title agents has extensive experience and knowledge to get your deal to a successful, transparent, and legal closing. To learn more about their expertise, call (513) 863-7600 or visit the website.

Other Announcements, Events and Deals from All Points Title & Closing
What is a Clear House Title?, Hamilton, Ohio
Before closing on a house, you'll need a title search to prove that the title is clear for you to take ownership. However, issues like debts and clerical errors can ma...read more
What Should You Consider Before Hiring a Title Agency?, Hamilton, Ohio
When it comes to buying a home, it’s not just about signing over the deed. First, you’ll need to hire an agent to conduct a title search and provide title insurance. This will e...read more
First Day of Fall!, Hamilton, Ohio
First day of Fall, the weather is beautiful! We hope you are enjoying the fabulous weather ! read more
3 Issues Title Searches Uncover, Hamilton, Ohio
Buying a house is an exciting, meaningful venture. It’s also a process that’s highly involved and requires significant prep work. One step you can’t overlook when purchasing a home i...read more
What YOU Should Know About Closing Protection, Hamilton, Ohio
When title insurance is purchased, Ohio law requires the title agent to offer to issue a closing protection letter (CPL) to the Buyer, the Seller, and/or the Lender. These ...read more