RealTown's RealTalk

C.A.R. achieved a compromise in AB 957, "Choice of Escrow Bill." In multiple discussions with the author, C.A.R. worked with Assemblywoman Galgiani to come up with compromise language that will require fair treatment for real estate owned (REO) buyers in the choice of title and escrow providers.

The new language now protects fair negotiation over settlement services, and has removed C.A.R.'s opposition.

The new language will codify in California law the federal RESPA rules for selection of title insurance, and extend the same rules to protect buyers in the selection of escrow services. In a nutshell, the sellers will have to negotiate the selection of title and escrow. Under the new language, if an REO seller wants to try and direct choice of escrow, the seller will have to pay for the privilege.

AB 957 will also impose new penalties on REO sellers that violate the law, and will empower state regulators to go after both RESPA and "steering" violations.

Saul

Saul Klein

CEO, Point2 Technologies

http://Point2.com

if an REO seller wants to try and direct choice of escrow, the seller will have to pay for the privilege.

AB 957 will also impose new penalties on REO sellers that violate the law, and will empower state regulators to go after both RESPA and "steering" violations.>>>

I think this is good but what about RELO sellers/ RELO companies? They do the same thing as REO's. I'll have to read this more closely to see if it applies to them too.

Catherine Myers, REALTOR
GRI, CRS, ABR, SRES
Alain Pinel Realtors
1646 No. California Blvd., Suite 101
Walnut Creek, CA 94596

925-683-2125 cell
925-465-1593 fax

www.DiabloValley.net
www.CCShortSales.com

If the purchase is in cash will RESPA and/or the agreement apply?

Chad Kumpe, GRI, ABR, CRS, SRES,Green
Real Estate Broker, Rogers, Arkansas
479-621-3683
www.ChadKumpe.com.

Has this bill passed? If so where can I find the documentation so I can provide it to the Arizona Association of REALTORS®? I have been trying to get them involved in stopping REO sales from forcing use of their own Escrow companies. I googled AB 957 and only found the proposal. The buyer should be able to chose their own Escrow Company.

Suzanne in Lake Havasu

Under the new language, if an REO seller wants to try and direct choice of escrow, the seller will have to pay for the privilege.

Normally both buyers and sellers each pay their escrow cost.
What does the new law means? Seller pays all the escrow cost, included the buyers part?