An Ohio transaction involves an out-of-state buyer who sends earnest money via electronic funds transfer (EFT) from a bank outside Ohio. The funds arrive in the listing broker's trust account. Under Ohio law, does the trust account requirement that the account be at a federally insured institution in Ohio apply to the source of the funds?
Correct Answer
D) No, the trust account location must be in Ohio, but the source of the buyer's funds can be from any institution
ORC §4735.24 requires the broker's trust account to be at a federally insured institution in Ohio. However, there is no restriction on where the buyer's funds originate. An out-of-state buyer can send funds from any bank, as long as they are deposited into the Ohio-based trust account.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Earnest money is a deposit made by the buyer at the time of the offer or shortly after to demonstrate good faith and serious intent to purchase the property. It is also called a good faith deposit.
Equitable title is the buyer's interest in a property after a purchase contract is signed but before closing, giving the buyer the right to acquire legal title in the future. The seller retains legal title until the deed is delivered at closing.
A financing contingency makes the purchase contract conditional upon the buyer obtaining mortgage approval within a specified time period. If the buyer cannot secure financing, they can cancel the contract and receive their earnest money back.
More Oh Specific Contracts Forms Questions
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Lucy, an Ohio buyer, asks her agent about the statute of limitations for breach of a written real estate purchase agreement. Under Ohio law, how long does the buyer have to file a breach of contract lawsuit?
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