Amendments to the Good Funds Act

The Good Funds Act took effect January 1, 2010, bringing with it one primary change as to how closings are conducted: If the Buyer needs more than $50,000 to close the transaction, he is required to have the funds wired. Prior to January 1, 2010, buyers usually brought in cashier’s checks.

One year later, the Good Funds Act has changed. Here’s how:

1. If a buyer wires funds into closing, and then finds out he needs more than expected, title company can accept cashier’s checks, and subject to their individual policies, personal checks.

2. Earnest money is no longer part of a buyer’s bottom line.

It remains to be seen whether these changes have any significant effects!