Good Funds

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July 2016 - Download the PDF 

Indiana (I.C. 27-7-3.7-et al.): Applies to Residential and Commercial Transactions

Acceptable Good Funds when $10,000 or more: wired funds that are unconditionally held by and irrevocably credited to the escrow account of the closing agent

Acceptable Good Funds when Under $10,000:

  • United States currency
  • Wired funds unconditionally and irrevocably credited to the escrow account of the closing agent
  • Certified or cashier’s checks that are drawn on an existing account at a bank, savings and loan association, credit union, or savings bank chartered under the laws of a state or the United States
  • A check drawn on the trust account of a licensed real estate broker
  • A personal check not greater than $500.00
  • A check issued by the state, the U.S., or a political subdivision of the state or the U.S.
  • A check drawn on the escrow account of another closing agent
  • A check issued by a farm credit service
  • A check deposited and held in escrow account of closing agent for at least (14) calendar days before the date of closing and less than $10,000

Not accepted: Money orders and/or drafts in any amount

Illinois (215 ILCS 155/26): Applies to Residential Transactions

Acceptable Good Funds when $50,000 or more: wired funds that are unconditionally held by and irrevocably credited to the escrow account of the closing agent; a check issued by this State, the U.S., or a political subdivision of this State or the U.S.; a check drawn on the fiduciary trust account of a title insurance company or title insurance agent

Acceptable Good Funds when Under $50,000:

  • Cashier’s checks, certified checks, bank money orders, official bank checks, or teller’s checks drawn on or issued by a financial institution
  • A personal check or checks in an aggregate amount not exceeding $5,000 per closing
  • A check drawn on the trust account of any lawyer or licensed real estate broker

Not accepted: Generic Money orders and/or drafts in any amount

Michigan: Notwithstanding that the state does not have a specific state statute, company policy and/ or title insurance best practices may dictate what will be acceptable funds.

Note: For Indiana, Illinois and Michigan, due to security concerns cash brought at closing is not preferred and may require an alternative option.

Earnest money given must also comply with the Good Funds statute, even if the transaction is not closing for 30 or more days.

We look forward to handling your real estate transactions and hope the above will create a more efficient and effective closing for your customers.

*The information contained in this flyer is intended for general informational purposes only and should not be construed as legal advice.

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