Would you take a personal check from a perfect stranger? What about an IOU? What if that stranger owed you a lot of money?
For most people, the answer would be “Probably not.” You would probably prefer to be paid in cash, or through a secure online payment system such as PayPal. It could be that the stranger’s check is deposited without a hitch, or that they end up making good on their IOU. But the reality is, you would prefer not to take a chance. Why? Because it’s just safer, and you want to be paid what you are owed.
Enter the Good Funds Law. The Good Funds Law seeks to regulate what types of “IOUs” escrow services and settlement agents can accept, and how soon they can disburse (pay out) those funds. Complying with the Good Funds Law is paramount, because it protects clients from fraud and potential escrow loss. It is important to note that the Good Funds Law is the bare minimum standard for escrow security.
Here at Home Surety Title, we choose to go above and beyond the basic standards to ensure the best security for our clients. If you would like to know more about what we do, and why we do it, be sure to contact us today!