Question

Clothilde brought her money to escrow at closing and was desperate for the sale to record immediately so she and her dog could move in, but closing was delayed until the escrow agent could verify that the loan funds had actually been deposited and all other checks had been cleared. This is an example of:
a. Blue Sky Law
b. Uniform Land Sales Practices Act
c. Good Funds Act
d. Transfer Certificate of Title

Answer 1

Answer:

C. Good Funds Act

Explanation:

Good Funds Act are simply laws that are made to protect the money funding purchasing of mortgage and refinancing transactions are safe for disbursement at the time of closing.

This act is actually meant to safeguard all parties from discovering they have unfunded mortgage at closing.

Good fund law is also known as Residential closing fund distribution Act of 2005. And it could be found in Good Funds Law (TCA § 47-32-101)

Section: 47-32-105 – Disbursement of funds by settlement agent from escrow or settlement account

Clothilde brought her money to escrow at closing and was desperate for the sale to record immediately so she and her dog could move in..was an example of Good fund Act.