I just received this email from Alan Johnson, in my local KREIA..
-------------------------------------------------------------------------------------------
Hi All,
-------------------------------------------------------------------------------------------
Hi All,
Since we are KREIA I thought I should spread the word of a new Indiana law on wired funds being needed for real estate closings.
A new law just came in effect for Indiana on July 1, 2009. If you are sending $10,000 or more to a real estate closing it must be wired funds. Less than $10,000 does not have to be wired. Details below.
I just recheck Kentucky law with a real estate attorney and there still is no law requiring delivery of wired fund for a Kentucky property closing. In Kentucky certified non wired funds are still ok. Details below.
Your Friend,
Alan H Johnson
cell phone 502-376-3275
Sonshine Realty
Are you Wired??
By John Kraft-SIRA Legal Counsel
Young, Lind, Endres & Kraft
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
By John Kraft-SIRA Legal Counsel
Young, Lind, Endres & Kraft
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
July 1 begins a new year for new laws!
One such law affects you as REALTORS® in a big way! It is the Good Funds Law ("GFL"). The purpose and intent of the GFL is to guarantee to parties that the money funding a real estate transaction in Indiana is immediately available for disbursement. A copy of the full text of the law is also within this edition of Property Writes for your own review. GFL requires wired funds for real estate escrow closings performed by Young, Lind, Endres & Kraft ("YLEK") or other title agents in the State of Indiana when the aggregate amount being taken to closing by one party is Ten Thousand ($10,000.00) Dollars or greater. This means to properly prepare your customers and clients for closing you need to obtain the wiring instructions from the title company in advance of the closing. This would be especially true to help facilitate back-to-back closings so funds have been accepted in the escrow account of the title agent of the first closing. For transactions involving Ten Thousand ($10,000.00) Dollars it will not be as easy as the buyer just picking up a cashier's check on the way to closing. Do not ask your title agent to alter the requirement-no matter how good of a relationship you have with the title agent-it is the law!
GFL allows for other types of "Good Funds" when the aggregate amount required at closing in less than ten thousand ($10,000.00) dollars. "Good Funds" can include a certified or cashier's check drawn on an existing account at a bank, savings and loan association, credit union or savings bank chartered under the laws of any state or the United States of America. It also allows for a check from a licensed real estate broker's trust account or the escrow account of another closing agent provided closing agent in the escrow transaction has reasonable and prudent grounds to believe that sufficient funds will be available for withdrawal from the account upon which the check is drawn at the time of disbursement of funds from the escrow account of the closing agent in the escrow.
One such law affects you as REALTORS® in a big way! It is the Good Funds Law ("GFL"). The purpose and intent of the GFL is to guarantee to parties that the money funding a real estate transaction in Indiana is immediately available for disbursement. A copy of the full text of the law is also within this edition of Property Writes for your own review. GFL requires wired funds for real estate escrow closings performed by Young, Lind, Endres & Kraft ("YLEK") or other title agents in the State of Indiana when the aggregate amount being taken to closing by one party is Ten Thousand ($10,000.00) Dollars or greater. This means to properly prepare your customers and clients for closing you need to obtain the wiring instructions from the title company in advance of the closing. This would be especially true to help facilitate back-to-back closings so funds have been accepted in the escrow account of the title agent of the first closing. For transactions involving Ten Thousand ($10,000.00) Dollars it will not be as easy as the buyer just picking up a cashier's check on the way to closing. Do not ask your title agent to alter the requirement-no matter how good of a relationship you have with the title agent-it is the law!
GFL allows for other types of "Good Funds" when the aggregate amount required at closing in less than ten thousand ($10,000.00) dollars. "Good Funds" can include a certified or cashier's check drawn on an existing account at a bank, savings and loan association, credit union or savings bank chartered under the laws of any state or the United States of America. It also allows for a check from a licensed real estate broker's trust account or the escrow account of another closing agent provided closing agent in the escrow transaction has reasonable and prudent grounds to believe that sufficient funds will be available for withdrawal from the account upon which the check is drawn at the time of disbursement of funds from the escrow account of the closing agent in the escrow.
Posts
No comments:
Post a Comment