“Good Funds”

The Louisiana Title Insurance Act and the Louisiana Department of Insurance require title agents to collect “good funds” at closing.  This generally means that parties must bring cash or certified funds to closing or arrange for wire transfers to the title agency.  This is not an optional requirement that the title agent can waive – fines for violating the Act or the Louisiana Insurance Department rules may be as much as $10,000 per individual per violation.

Specifically a party must arrange for funds in cash, wire transfers (receipt must be confirmed), certified checks (or unconditionally collected personal checks), automated clearing house credit transfers, checks issued by HUD lenders on FDIC banks or Real estate brokers’ checks.  However the title agent may accept “other checks” not exceeding $2,500 in the aggregate.

Since the exact amount a party must bring to closing might not be known until the last minute, parties should get an estimate and wiring instructions from the title agent then arrange to have that estimated amount paid to the title agent either by wire transfer or in a certified check.  If additional funds are needed, the party can give a personal check (for not more than $2,500.00) and if a refund is due, the title agent will remit it immediately.

R. J. Calongne, Jr., A Professional Law Corporation