Banks may find 'Buyer's Choice' is best
Letter to the Editor
By Inman News, Thursday, November 12, 2009.Re: 'Debate over real estate "Buyer's Choice" law' (Nov. 12)
Dear Editor:
The banks have to offer the buyer the choice of escrow companies after they have accepted the buyer's offer. Therefore, the agents who said that the bank can just choose an offer that states "seller's choice" are missing an important part of the bill.
The seller must offer the option to the buyer that can take place only after the offer was accepted. If the buyer says, "Yes, I want to use 'XYZ' company," then the seller cannot cancel the offer or force the buyer to use the seller's selected services without being fined for three times the charges.
I do not believe that the banks want to be worried about the potential lawsuits and fines. The banks will begin to work with the various independent escrow companies, and what the banks might find is that it is actually easier to get deals closed when the escrow company or title company are not so overwhelmed with volume.
Kyle Barnes
Vice president
Billie Davis Escrow
Beverly Hills, Calif.
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Submitted by Rob Aubrey on November 15, 2009 - 6:38am.
Wasn't that always the rule.
IS it to say that you can agree in the offer phase and then change afterwards so you can get your offer accepted.
Section 9 of RESPA prohibits a seller from requiring the home buyer to use a particular title insurance company, either directly or indirectly, as a condition of sale. Buyers may sue a seller who violates this provision for an amount equal to three times all charges made for the title insurance.