Good Funds Requirements in Arizona Real Estate: What You Need to Know
When you’re buying a home or closing a real estate transaction in Arizona, you’ll quickly hear the term “Good Funds.” But what exactly does it mean, and why does it matter?
Simply put, title companies are only allowed to accept “good funds” for closing — which means certified funds such as wires or cashier’s checks. Personal checks? Sorry, not allowed.
This requirement protects all parties in the transaction and ensures that your closing happens smoothly, securely, and without delay.
What Are “Good Funds”?
In real estate closings, Good Funds refer to money that is immediately available and guaranteed. Title companies cannot take the risk of depositing funds that could bounce, be delayed, or fail to clear.
Common examples of acceptable “Good Funds” include:
-
Wire Transfers – Sent directly from your bank to the title company’s escrow account.
-
Cashier’s Checks / Certified Checks – Issued by your bank and guaranteed by their funds.
-
Official Bank Checks – Similar to cashier’s checks but may vary by institution.
What Is NOT Accepted?
Even though it might seem easier, personal checks are not considered “good funds.”
Why? Because they can take several days to clear and carry the risk of insufficient funds.
Likewise, cash is rarely accepted for large real estate transactions, as it can raise compliance and reporting concerns.
Why Good Funds Requirements Exist
The main purpose is protection — for you, the seller, the title company, and the lender.
Here’s why they matter:
1. Immediate Access to Funds
Real estate closings are time‑sensitive. Good funds mean the title company can disburse money to the seller and pay off liens without waiting for checks to clear.
2. Fraud Prevention
Certified checks and wires are harder to counterfeit or stop than personal checks, lowering the risk of fraud.
3. Compliance with Arizona Law
In Arizona, state law and the Arizona Department of Insurance and Financial Institutions set strict rules about escrow money. Accepting only good funds keeps title companies in compliance.
Tips for a Smooth Closing
-
Plan Ahead – Contact your escrow officer early to confirm the exact amount due and acceptable payment methods.
-
Wire Early – Send your wire at least a day before closing to avoid delays.
-
Double‑Check Instructions – Always verify wire instructions directly with your title company to avoid wire fraud.
-
Bring ID for Checks – If bringing a cashier’s check, have your government‑issued ID ready.
The Bottom Line
Good funds requirements may seem like just another real estate rule, but they’re in place to protect your investment, your time, and your peace of mind. By ensuring your closing funds are certified and immediately available, you help make the process faster, smoother, and safer for everyone involved.
💬 Have questions about Good Funds Requirements or need guidance for your upcoming closing? Our team at Arizona Premier Title is here to help you every step of the way.