California's Buyer's Choice Act

California's Buyer's Choice Act (Assembly Bill 957) was signed into law by Governor Arnold Schwarzenegger on October 12, 2009.  The Buyer's Choice Act prohibits the seller of a property acquired through foreclosure to require a buyer to purchase title and escrow services from a company of the seller's choice as a condition to receive offers or sell the property.  That doesn't mean that the buyer can't accept the seller's recommendations for a company for their title and escrow.  The seller just can't make it a required for the sale.  This new law only applies to residential properties that are improved by four or less units. 

Penalties for violating California's Buyer's Choice Act are that the seller is liable to the buyer for three times the amount of all charges made for the title insurance and/or escrow services.  In addition, the seller will be considered to have violated their licensing law.  However, a sale cannot be set aside solely because this law has been violated.  California's Buyer's Choice Act will remain in effect until January 1, 2015, unless it is extended by the Legislature.

Why was California's Buyer's Choice Act put into place?  The government felt that the troubled real estate market created a situation where the majority of homes available for resale were in the hands of the foreclosing lenders, which created a high potential for unfairness and abuse by sellers on foreclosed homes.

If you have any questions about Ventura County foreclosures or need help with your Ventura real estate, please contact the Z Team.  We are always happy to help.

Dave and Pat Zumbrun, The Z Team for Ventura County real estate