Georgia Good Funds Law Follow-Up
No one likes bank fees. Most banks charge a fee to send or receive a wire, but do not charge to send funds through an Automated Clearing House (ACH). However, ACH transfers can be reversed or recalled, which is why closing attorneys cannot accept them into their escrow accounts.
On September 21, 2026, WSB-TV Atlanta reported on a real estate broker holding earnest money that a buyer had sent via ACH. The buyer terminated the contract on the day of closing and agreed the seller was entitled to the earnest money. Yet, the buyer was able to pull the funds back out of the broker’s escrow account before they could be disbursed, so the seller did not receive the money (yet). This scenario illustrates exactly why closing funds must be sent by wire rather than ACH. Once a wire is received, it cannot be pulled back like an ACH transfer. That finality is the reason wire transfers are considered “Collected Funds” or “Good Funds,” while ACH transfers are not.
Before Georgia’s Good Funds law (O.C.G.A. § 44-14-13), some lenders and buyers routinely closed with a certified check for the amount due. When banks began failing during 2007–2009, many of those certified checks failed to clear, leaving closing attorneys with substantial shortages in their escrow accounts. Today, funds can only be disbursed from an escrow account once they have cleared. This rule includes earnest money. While earnest money may initially be paid with a check or wire, it cannot be refunded or applied to the purchase until the funds have officially cleared.
John C. Bennett is a real estate closing attorney and owner of Origin Title and Escrow, Inc.. Since 2003, Origin Title has handled real estate transactions – purchases, refinances, reverse mortgages – quickly and professionally. There will be no surprises, nothing misunderstood. Title searches are thorough and well-reasoned, to avoid unpleasant surprises later down the road. Calculate your closing costs in Georgia or Florida using our calculator or contact Origin Title using this form.