Good Funds Laws

Good Funds Laws for Real Estate

We have compiled the Good Funds law for each state. Each Escrow Agency and Title Company have created their own timing of hold periods, dollar amount thresholds and types of "Good Funds" payments accepted.

Your closing agent is not able to close or disburse any funds prior to all deposits of checks, drafts, wired funds or cash deposits made to the escrow account having "cleared the bank" or having become good, usable funds. The term "good funds" means that the escrow account funds are fully available for withdrawal. Although payment types may vary from state to state, the most common or preferred type of closing funds are:

Wire transfers

One of the most effective ways to guarantee "good funds" is the use of wire transfer funds. A wire transfer is a method utilized to transfer of funds electronically. An Escrow Agency or Title Office can arrange to receive the wire transfer funds from a lender or buyer. Most banks require all signatories on the account appear, in person, to effectuate a wire transfer.

Cashier's check (sometimes referred to as a bank check)

A cashier's check is, a physical draft, drawn by a financial institution and debited from your account. This means, of course, that you can’t get a cashier’s check unless you actually have the available funds in your account and you appear in person at your bank.

Once your account is debited, the financial institution is responsible for paying the payee. The cashier's check is signed by a representative of the financial institution and made payable to a third party (usually the seller or the seller's lender). These checks are secured by the funds of the issuer — the financial institution — and include the name of a payee (the entity to which the check is payable - the seller or its lender) and the name of the remitter (the entity that paid for the check - you).

Types of funds your closing office may not accept

Good Funds Banking Network

Good Funds ARE NOT just Wires and Cashier's Checks any longer!
Our "Good Funds" payment gateway allows for real-time payment, immediate, irrevocable, interbank account-to-account transfer that utilizes a real-time messaging system connected to every end-user through your financial institution. Funds are available for use by the receiver and real-time confirmation is provided to both to you ("the sender") and receiver in seconds.

We work with All Banks & Credit Unions

Good Funds Gateway's inter-bank digital payment transfer system works with all Banks and Credit Unions that are participants in the US Federal Reserve System.

Keep your current Banking Relationships!

Security of Data & Funds

Your money and data are serious business. Our white glove approach ensures your data is highly protected and available online real-time.

Includes QuickBooks® and other accounting and escrow, title closing software integrations

Enrolling in the GoodFundsGateway system takes only a few minutes. You can eliminate "paper" checks from your system and start sending electronic payments in just a few simple steps.

How "GoodFundsGateway" Works


Owners and/or authorized persons will be properly identified to mitigate risk and loss. We provide real-time authentication that helps identify whether the checking/savings account that is being used to facilitate a payment does in fact belong to that individual or business.


Authorization includes both the initiation of payment instructions by the sender, and the real-time acceptance by the sending and receiving financial institutions of the payment request via a real-time messaging.


Providing a real time verification of what the current balance in checking/savings account of the individual or business and the current account status.


Immediate Posting (recordation / reporting) by both the sending and receiving financial institution.


Your transaction(s) will receive Real-time gross settlement (where each transaction is settled individually in real time).


Real-time messages to all the parties involved throughout all levels of the transaction(s), including Authentication, Authorization, Verification, etc.

Good Funds Gateway

Core Features include online integrated Origination, Sending, Receiving and Recordation of all Good Funds Transfers. All participants receive electronic notifications.

Use our online Payment Gateway interface or integrate your in-house system with our API


110 Juniper Street, San Diego, CA 92101

Office: (866) 927-7180

Fax: (603) 947-5197

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