As I posted previously.... Buyer's now get a choice, thanks to Real Estate Settlement Procedures Act and AB 957 Buyer's Choice Act.

When you are purchasing foreclosed properties, you should be getting a form with the wording listed below or something similar.  This should be signed along with the offer and presented to the bank for their signature.

This is not something the banks are all tickled about, but it is now the law.  They are not suppose to hold buyer's choice of escrow against them when making a decision on the offer presented.  It's the law!!! So if you do not get a notice that addresses this when you sign your offer --- ask your agent for it.

It should read something like this....

Notice to Buyer

Regarding Real Estate Settlement Procedures Act and AB 957

Buyer's Choice Act

Property Address: _____________

According the Real Estate Settlement Procedures Act (RESPA) and the Buyer's Choice Act (AB 957), a seller of residential real property improved by four or fewer dwelling units shall not require directly or indirectly, as a condition of selling the property, that title insurance covering the property or escrow services provided in connection with the sale of the property be purchased by the buyer from a particular title insurer or escrow agent.  The law does not prohibit a buyer from agreeing to accept the services of a title insurer or an escrow agent recommended by a seller if written notice of the right to make an independent selection of those services is first provide by the seller to a buyer.

Prior to entering escrow, __________ (Bank Name) selected an escrow company and a tilte provider in order to generate a preliminary title report concerning the above-referenced property.  Buyer is hereby informed that Buyer has the right to purchase the services of title and escrow providers of Buyer's choice.  Bank is not mandating, either directly, or indirectly, that Buyer use Bank's title and escrow providers.  Buyer is hereby informed that Bank escrow company other than those that Bank has recommended, Buyer shall informat the listing agent of Buyer's choice of providers. If Buyer selects different providers other than those that Bank has recommended, this will not affect the Bank's decision to sell the property to a particular buyer.

By signing below, Buyer acknowledges receipt of this Notice and Buyer's right to make an independent selection of title and escrow service providers.

and there is a place for both buyer, seller, listing and selling agent to sign and date.

DO NOT FORGET TO ASK YOUR AGENT FOR THIS FORM IF YOU DO NOT GET IT WITH EACH OFFER YOU SUBMIT.  Most listing agents will have this form attached to the MLS listing for your agent to download it and have you sign it right along with your offer.

This does not affect short sales because of now, buyers have this choice already.

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