GOOD FUNDS

Have you ever wondered why title cannot accept a personal check for closing funds?  There’s a rule for that!

• The Texas Department of Insurance states that title must have “Good Funds”, which is a defined term.
• The company must follow Procedural Rule P-27 as set out by the Texas Department of Insurance regulating disbursement of funds. Good Funds must be in possession of the title company prior to any disbursements. Good Funds as defined in Rule P-27 include cash, wire transfers, certified checks, cashier’s checks, and teller checks.
• While cash does meet the definition of “good funds”, we do not take brief cases full of cash.
• Additionally, cashier’s checks are considered “Good Funds”, however they are not immediately collected funds. Cashier’s checks can take 1-3 business days to become collected funds.

Personal checks from the client do not meet the definition of Good Funds.  Therefore, they cannot be accepted for closing funds.

As always, THANK YOU FOR ALLOWING HERITAGE TITLE COMPANY THE OPPORTUNITY TO
COMPLETE YOUR TRANSACTION. WE LOOK FORWARD TO WORKING WITH YOU!