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For the life of me, I simply cannot understand this, and it is becoming more and more prevalent, and our Agents are bumping into on an almost daily basis.
Agents are REQUIRING are indicating in the MLS listings, and this morning directly in the sales contract, that the Buyer(s) purchase title insurance and close with a specific Title Company or Attorney's Office!
Section 9 of RESPA violates this very specifically prohibits a seller from requiring the home buyer to use a particular title insurance company, either directly or indirectly, as a condition of sale.
Since this is often occurring on short sales and REO's, I understand there may have been some title search, preliminary HUD work etc. done by the title company/attorney or that Agents like to work with particular companies, but it is a violation of FEDERAL LAW to require it.
When I bring this little RESPA law to their attention they either become very defensive, or they just simply do not seem to care, but not one of them will budge.....they all insist that this is a condition of this transaction....Huh? When I speak to their Brokers I receive the same reaction
I feel like I am in the twilight zone. I do not understand why in the world this many Agents and Brokers would want to put themselves in this position, and the cavalier attitudes about it just absolutely baffles me.
Perhaps I am missing something and someone can help me understand. Can anyone help me?
Is this situation isolated to Naples Florida, or is this happening elsewhere, and does anyone have any explanation(s) and/or solution(s)?
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.