The Buyer's Choice Act Is In Place

If you're a buyer, here is some good news for you and it could save you money!

On Monday, October 12, 2009 Governor Schwarzenegger signed AB 957, The Buyer's Choice Act and it's now in place. The Buyers Choice Act allows by law the buyers of foreclosed (bank owned) properties to choose the title and escrow company in their transaction.

Until now, sellers have been requiring a buyer to purchase title and escrow services from a company chosen by the seller as a condition to receiving offers or selling the property. The banks and asset managers no longer can direct buyers to title and escrow companies of their choice.

Here are the highlights:

• It applies only to residential property and covers title insurance and escrow services
• A buyer can agree to accept the recommendation of the seller as to which title or escrow company to use provided that a written notice of the right to make an independent selection of those services is first given by the seller to the buyer.
• A seller who violates the law is liable to the buyer for three times all charges made for the title insurance or escrow service.
• A purchase transaction cannot be invalidated solely because of the failure to comply with the law.

But why the Act? The Legislative findings and declarations state that the recent troubled real estate market has resulted in a concentration of the majority of homes available for resale withing the hands of foreclosing lenders and has dramatically changed the market dynamics affecting ordinary home buyers. The Act says that the potential for unfairness occasioned by the resale of large numbers of foreclosured homes required that protection against abuse be made effective immediately.

If you have any other questions regarding this Act, please don't hesitate to contact me.

To Your Success -

Maria