STATEHOUSE - Hoosiers looking to buy or sell a home will soon have the guarantee that the money from the transaction will be available if House Enrolled Act 1374 becomes law. The House of Representatives on Tuesday voted unanimously 95-0 to concur with Senate amendments to the bill, sending it to Gov. Mitch Daniels' desk.
|Start Date: ||4/28/2009|| All Day|
|End Date: ||4/28/2009|
State Rep. Mike Murphy (R-Indianapolis) authored the bill, which is designed to give homeowners and homebuyers added financial protection.
"This is an issue I've been working on for years," Rep. Murphy said. "Currently, Hoosiers have no assurance the check they deposit from a real estate transaction is good, and they have no guarantee this money is used for their purposes.
"This bill creates 'Good Funds' provisions that protect homeowners by giving them the assurance the money that is supposed to be in their bank account is actually there."
Primarily, the bill does three things:
- It requires closing agents to deposit money into an escrow account, unless those involved agree to some other arrangement.
- It stipulates that amounts greater than $10,000 are wired and not provided as a check. This is to guarantee the money is immediately available.
- It allows the closing agent to advance up to $500 from an escrow account to pay off any incidental fees involved in the real estate transaction process.
Thirty-two states already have this type of "Good Funds" legislation.
Gov. Daniels may now sign HEA 1374 into law, veto it or let it sit for seven days, after which the bill becomes law.