Legislation Protects Buyers of Foreclosed Properties

California Assembly Bill 957, also known as the "Buyer's Choice Act," was signed into law Oct 13 '09. It protects buyers of foreclosed properties by ensuring they can choose their own real estate service providers, such as title companies and escrow services, etc.

Frequently Asked Questions

• What is the Buyer's Choice Act? It prohibits a seller who acquired property as a foreclosure sale from requiring a buyer to purchase title and escrow services from a company chosen by the seller as a condition to receiving offers or selling the property.
• Who is a seller under the act? A mortgagee or beneficiary under a deed of trust who acquired title to the property at a foreclosure sale, including a trustee, agent, officer or other employee of any mortgagee or beneficiary.
• Can a buyer agree to accept the recommendations of the seller? Yes, provided a written notice of the right to make an independent selcection of those services is first given by the seller to the buyer.
• If a person violates the law, can the sale be set aside? No. A transaction cannot be invalidated solely because of the failure to comply with the law.

Source: California Land Title Association