Well every January it seems a new group of laws goes into effect
so why should Illinois be any different! Keeping you updated with real estate matters is what I do so here's another law that just went into effect regarding closings.
So some people might be under the misunderstanding that 'bags of money' are brought to closings - well that's not true any longer. Illinois sure knows how to take the 'fun' out of a real estate transaction!
If funds required for a transaction are $50,000 or more, you must now provide these funds in the form of a wire transaction. Please note that the title company will continue to accept checks from another title company escrow transaction. For example, if you sold a home and are buying a home, the title company proceeds (in the form of a check) from the sale of a home may be used as 'good funds' for the new purchase transaction.
The New Rule of Thumb: If you need $50,000 or more for a title company transaction, you will have to wire the funds from your bank or financial institution (no more cashier's or bank checks). This will probably now cost you a small fee from your bank.
Go figure, your cash (in nickels or quarters) is no longer good at closings.
Reference: January 1, 2010, "Good Funds" Section of the Illinois Title Insurance Act (215 ILCS 155/26 (2010).
Title Companies Change the Rules in Illinois
6 comments • Lyn Sims - Schaumburg Homes • January 18 2010 04:12PMComments
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Odd, Lyn. Printed on the bills in my wallet is "This note is legal tender for all debts, public and private." Does this mean Illinois has ceded from the Union?
Lyn - In my final closing--as I exited the building business 3 years ago--the attorney required a wire transfer. With all the chaos in the market--one closing attorney filed bankruptcy and some of his checks didn't clear--and with the ease of printing "fake" checks, I understand the problem.
John: I would understand if an attorney also acting as a title company had problems. Evidently even certified checks aren't always good. There will be problems with wire transfers soon too!
Irene: Even bags of money are no longer good.
Lyn, I like the wiring of funds...from the closing attorney, right into my business account! At least if the wire transfer is in the air, you have a clue that it is going to show up. Years ago, NC got into a mess of trouble with keys and funds being distributed prior to prove of funds and recording of the deed. We are now all prepared to wait. Another hoop to jump.
I'll bet that this could be challenged in court and overturned ... but I doubt there are folks that are eager to fight for their right to wheelbarrow cash to settlement.
Will: Good point, but I do know that banks charge for those wire transfers.
Jane: It's funny, supposedly wire transfers are 'up to the minute'. Then why are we always waiting for the 'wire to hit'? In fact, I was at one closing where the closer couldn't find the transfer & we sat and waited and waited ......