Good Funds in Ohio

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Wet or Dry Settlement



No escrow or closing agent knowingly shall make a disbursement from an escrow account on behalf of another person in an escrow transaction, unless the following conditions are met:

(A) The funds necessary for the disbursement : (1) Have been transferred electronically to or deposited into the escrow account of the escrow or closing agent and are immediately available for withdrawal and disbursement; (2) Are in an aggregate amount not exceeding $1,000, have been physically received by the agent prior to disbursement, and are intended for deposit no later than the next banking day after the date of disbursement; or (3) Are funds drawn on a special or trust bank account as described in division (A)(26) of section 4735.18 of the Ohio Revised Code.

(B) The transfers or deposits described in division (A) of this section consist of any of the following: (1) Business checks drawn on special or trust bank accounts described in division (A)(26) of section 4735.18 of the Revised Code; (2) Cash, personal checks, business checks other than those described in division (B)(1) of this section, certified checks, cashier's checks, official checks, or money orders that are in an aggregate amount not exceeding $1,000 and are drawn on an existing account at a federally insured bank, savings and loan association, credit union, or savings bank; (3) Electronically transferred funds via the automated clearing house system initiated by, or a check issued by, the United States or Ohio, or by an agency, instrumentality, or political subdivision of the United States or Ohio; or (4) Any other electronically transferred funds. OH Rev. Code 1349.21.


Must have good funds at or before closing.

Exceptions to Requirements

An escrow or closing agent can advance funds of up to $1,000 from an escrow account or otherwise on behalf of a party to an escrow transaction for the purpose of paying incidental fees, such as conveyance and recording fees, in order to effect and close the escrow transaction. OH Rev. Code 1349.22.