Juneau -- The Alaska House of Representatives Tuesday unanimously approved House Bill 13, the "Good Funds" Bill. HB 13 is an effort to assure consumers involved in a residential real estate transaction that their money will be safely received in a timely manner and properly accounted for when it is delivered to a settlement agent.

"Consumers need to be assured that their funds will not be jeopardized and will be available when needed during the course of a residential real estate transaction," said Representative Norman Rokeberg (R-Anchorage), sponsor of HB 13. "Under the State's existing procedures, sellers and settlement agents are exposed to potential liability. Sometimes the amounts of money involved can be substantial."

HB 13 requires that, before settlement agents record documents which either transfer residential property or establish a security interest in residential property, the money required under the escrow agreement must be "Good Funds," that is, available for distribution. Commercial real estate is not affected by this legislation.

"A large number of states, including Washington, Oregon, and California, already have "Good Funds" laws on their books, and an increasing number of incidents have demonstrated the need for Alaska to do likewise," Rokeberg said. "With the increasing utilization of electronic mortgages, more and more Alaskans are using out-of-state mortgage companies. Problems have arisen from the failure of some of these 'Outside' firms to fund these transactions properly and in a timely manner.

HB 13 now moves to the Senate.

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