The residential real estate industry has historically been one of the most regulated industries in the United States. In response to the housing crisis of 2008, Congress passed the Dodd-Frank Wall Street Reform and Consumer Protection Act in 2010, increasing regulatory oversight of the processes involved in home purchases.
The most significant provisions of Dodd-Frank went into effect on October 3, 2015. Known as TRID, which stands for TILA / RESPA Integrated Disclosure, all businesses providing services to home buyers – lenders, realtors and title agency/closing service/escrow providers – are subject to much more stringent privacy, disclosure, and other standards.
AREA Title Agency had already been practicing the newly required standards and, to satisfy regulatory agencies, prepared the Account Management Policy.
Ohio’s Amended Good Funds Statute
On April 6, 2017, Ohio’s Amended Good Funds Statute goes into effect.
The bottom line is this: All funds brought to closing over $10,000 must now be wired into a title agency’s escrow account, and the title company cannot disburse any money until that wire is actually received in the escrow account.
This does not pertain to earnest money checks.
There are too many other specifications and particulars in the new law to detail here, but if you’d like to review an easily understandable Overview and Frequently Asked Questions About the new Ohio Good Funds Statute, click here for the Overview. Click here for Frequently Asked Questions.