A new law called The Buyer's Choice Act prohibits an REO (bank-owned) lender selling residential property up to four units from requiring the buyer to purchase escrow services or title insurance from any particular company. This may not sound like a big deal, but we've seen many sales fall through because of bank-chosen escrow companies located in southern California (and even worse, somewhere across the country.) Customs vary from area to area, and these escrow and title companies don't understand how we do business locally. Generally, the buyers pay these fees anyway, and it's only fair that they should have the right to chose the company. Of course a buyer who has received written notice of the right to make an independent selection may agree to the REO lender's escrow or title recommendations. An REO lender that violates this law can be held liable for three times the charges the buyer incurred. This law expires on January 1, 2015
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