Buyers and Realtors®, say goodbye to Southern California Title and Escrow companies and their frustratingly slow and poor service when handling foreclosures. Assembly Bill 957 known as the ‘Buyers Choice Act’ is now law. It prohibits a seller (lender) of foreclosed homes from requiring a buyer to purchase title insurance and escrow from their preferred service provider. REO sellers can no longer make it a condition of receiving offers or selling their homes!
The law went into effect on October 12, 2009 and will remain in effect until January 1, 2015. The seller/lender must now provide written notice of independent selection rights and applies only to residential property improved by 1-4 dwelling units. Sellers who violate this act are considered in violation of their licensing law and are liable to the buyer for three times all the charges made for title and escrow services.
