LEGISLATIVE COUNSEL'S DIGEST


AB 957, as amended, Galgiani. Residential real estate transfers:
title insurance: escrow companies.
Existing law generally regulates the transfer of real property,
and imposes specified obligations on a seller of real property.
Existing law authorizes a mortgagee or beneficiary under a deed of
trust to sell property securing the mortgage or deed of trust at a
foreclosure sale under certain circumstances. Existing federal law
prohibits a seller of property that will be purchased with the
assistance of a federally related mortgage loan from requiring the
buyer to purchase insurance from any particular company.
This bill would enact the Buyer's Choice Act, which would
prohibit, until January 1, 2015, a mortgagee or beneficiary under a
deed of trust who acquired title to residential real property
improved by 4 or fewer dwelling units at a foreclosure sale
from, as a condition of receiving offers or selling that
real property to a buyer, requiring , directly or
indirectly, as a condition of selling the property, that the
buyer to purchase title insurance or escrow
services in connection with the sale from a company chosen
by the seller particular title insurer or escrow agent
. This bill would provide that the act does
not prohibit a buyer from agreeing to accept a title insurer or an
escrow agent recommended by the seller if written notice of the right
to make an independent selection is first provided by the
seller to the buyer. A seller who violates these provisions
would be liable to the buyer for an amount equal to 3 times all
charges made for the title insurance or escrow services.
This bill would declare that it is to take effect immediately as
an urgency statute.