San Dieg Real Estate - California Purchasers of Bank Owned Properties WIN New Rights

California REO Buyers can now select their own title and escrow services in as provided by California Assembly Bill 957 signed into law today by Governor Schwarzenegger.

Effective last Sunday, October 11, 2009, the Buyer's Choice Act prohibits any REO lender that is selling a residential property of up to four units, from requiring the REO purchaser to purchase escrow services or title insurance from companies that they have previously made arrangements with.

I think this bill will go a long way in providing that REO services will be better distributed to locations that better serve the Buyers and will allow them to shop around for the price and quality of those services. Local agents can expect to have escrows and title services from people and companies that they are already acquainted with as well. Now maybe they could pass a law that re-instates some of the Buyer's right's that are stripped away in the lender's re-write of the Buyer's offer that a Buyer either has to accept or just walk away.

A buyer now will have the option to select their own service providers but still may elect to select those service choices from the REO lender . Many lenders have often negotiated lower prices with their choice of service providers often based on sheer volume and REO purchasers now have the option to chose .

The biggest benefit on the enforcement side is that if an REO lender violates this law, they can be held liable for three times the charges the buyer incurs, whereas a violation by the seller's agent now may be subject to license disciplinary action.

This law does however have an expiration to it. That being January 1, 2015. I think our legislatures are telling us that the flurry of REO activity will be over by that time. For some of us, that is hopeful news. For others, not so much.