Q: is it normal to wire transfer downpayment and fees to title company before the closing date?
I am purchasing a house in Findlay, OH.The title company said that they will not be able to accept a check in $10,5000 since the state of Ohio
has what’s called the “Good Funds Law”. This law requires that any funds greater than $10,000 be electronically wired to title company.
they want me to contact my bank and ask them how long it will take them to wire transfer these funds to Beck Title Agency Ltd 102 E Findlay St Carey, OH
my closing date is monday, 7/16, 2 PM. once I initiate the wire transfer with them, is there any fraud risk? is it normal in ohio?
A: It is required in Ohio, as the title company has advised you. Check with your bank about the process and the security. The title company will provide wire transfer instructions.
Adam Savett agrees with this answer
A: The law in Ohio changed in 2017 and now requires that any funds for more than $10,000 for a residential real estate transaction be electronically wired to the title company prior to closing.
This is actually an increase (effective September 29, 2017) from $1,000 to $10,000.
Cash, personal checks, certified checks, official checks, or money orders are still acceptable for expenses up to $10,000. This threshold cannot be circumvented by issuing multiple checks or utilizing a multitude of different forms of payment.
The specific provision is in ORC §1349.21.
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