Sacramento Report
February 16, 2010
Buyer’s Choice Act Revisions Introduced Into California Legislature
First introduced into and passed by the California Legislature last year, the Buyer’s Choice Act prohibits a mortgagee or beneficiary under a deed of trust who acquired title to residential real property improved by four or fewer dwelling units at a foreclosure sale from requiring, directly or indirectly, as a condition of selling the property, that the buyer purchase title insurance or escrow services in connection with the sale from a particular title insurer or escrow agent.
Legislation introduced this year (Assembly Bill 1720) by the bill’s original author, California State Assemblywoman Cathleen Galgiani, would make revisions to the Buyer’s Choice Act that would prohibit a seller from conditioning approval of the sale of residential real property that is in foreclosure on the selection made by the buyer as indicated on an independent selection form.
