Neb.Rev.Stat. § 76-2,122 requires any person, including a real estate broker, who closes a real estate transaction to have received “good funds” which are available for disbursement at the time of closing a real estate transaction. A “real estate closing agent” is defined in Neb.Rev.Stat. § 76-2,121 as “a person who collects and disburses funds on behalf of another in closing a real estate transaction, but shall not include a seller or buyer closing a real estate transaction on his or her own behalf, or a lender closing a real estate loan transaction.” The exception for lenders closing a real estate loan transaction is designed to differentiate between real estate closings and real estate loan closings.
In order to act as a real estate closing agent, a person must be (1) licensed or regulated by one or more state or federal regulating entities listed in § 76-2,121 or (2) employed by a person or entity regulated by one or more of such entities. Among the regulating entities defined under this law are the Nebraska State Department of Banking and Finance and the Federal Deposit Insurance Corporation.
Under § 76-2,121, “good funds” are defined as:
a. lawful money of the United States;
b. wired funds when unconditionally held by the real estate closing agent or employee;
c. cashiers’ checks, certified checks, bank money orders, or teller’s checks issued by a federally insured financial institution and unconditionally held by the real estate closing agent or employee; or
d. United States Treasury checks, Federal Reserve Bank checks, Federal Home Loan Bank checks, State of Nebraska warrants and warrants of a city of the metropolitan or primary class.
Any real estate closing conducted in Nebraska on or after July 16, 1994, must be closed with “good funds” (funds that are available for disbursement at the time of closing a real estate transaction) and must be conducted by an authorized real estate closing agent. While bank employees may not generally be involved in closing the real estate transaction itself, the proceeds from bank loans to be used for real estate purchases need to be in the form of “good funds”.
An exception to the “good funds” requirement [See, § 76-2,122(2)(a)] allows that the sum of up to $500 need not be available for disbursement from good funds.