Urge support for AB 957!

Assembly Bill 957, the “Buyer’s Choice Act,” is one of the best — and most needed — pieces of legislation to come down the pike in a long time.

And it's coming up for a vote in Assembly Judiciary Committee on Tuesday (5-5-09). AB 957 allow buyers of bank-owned properties to use their own title and escrow companies, as opposed to banks dictating those choices for them. In many cases, banks have been requiring that buyers use the title and escrow companies the banks have contracts with.

It’s a chummy relationship that often causes local homebuyers to pay up to twice as much in escrow fees to out-of-the-area escrow offices that often provide substandard service to the buyer. The federal Real Estate Settlement Procedures Act (RESPA) prohibits a seller of residential property from requiring or influencing a buyer to purchase title insurance from a company chosen by the seller.

So this practice is not only expensive — it’s just wrong.

I encourage readers, brokers, real estate agents and other industry professionals to contact Assembly Judiciary Committee members right away and urge them to vote in support of AB 957. Let’s put some ethics back into the industry. For more industry news, log onto RESPAnews.com.

Here's a form letter that was posted on RE Insider that you can sign and fax to Assembly Judiciary Committee members:

Dear Assembly Member:

I support AB 957, The Buyer’s Choice Act. This is important legislation that affects my business and must be enacted!

I understand that this bill will prohibit banks (sellers who acquired title to residential real property at a foreclosure sale) from requiring the buyer to purchase title insurance or use escrow services chosen by the seller/bank. And it would prohibit a seller/bank from, without good cause, disapproving the use of a title or escrow company chosen by the buyer.

Of particular importance is the language in the bill that prevents a bank who is a seller from disapproving of a buyer’s choice of title, escrow and settlement companies without good cause. This will help prevent the current practice of large banks from putting inappropriate pressure on buyers to agree to use companies that provide an advantage to the banks in the transaction.

This bill will put the choice of affiliate services back where it belongs, with the consumer. Thank you for undertaking this important legislation in California.

Sincerely,
____________________________(Signature)
____________________________(Printed Name)
____________________________(Company Name)
____________________________(Street Address, City, State, Zip)
____________________________(Phone Number)


CC: Assembly Member Cathleen Galgiani, FAX 916-319-2117
Assembly Judiciary Committee

Assemblymember Mike Feuer (D) - ChairState Capitol, Room 3146, Sacramento, CA 95814. Fax: 916-319-2142. Counties: Portions of Los Angeles. Main Cities: Beverly Hills, Sherman Oaks, West Hollywood, West Los Angeles.

Assemblymember Van Tran (R) - Vice ChairState Capitol, Room 4130, Sacramento, CA 95814. Fax: 916-319-2168. Counties: Portions of Orange. Main Cities: Costa Mesa, Garden Grove, Westminster, Fountain Valley, Stanton, Anaheim, Newport Beach.

Assemblymember Julia Brownley (D) State Capitol, Room 2163, Sacramento, CA 95814. Fax: 916-319-2141. Counties: Portions of Los Angeles, Portions of Ventura. Main Cities: Agoura Hills, Calabasas, Los Angeles, Malibu, Oxnard, Port Hueneme, Santa Monica, Westlake Village.

Assemblymember Noreen Evans (D) State Capitol, Room 6026, Sacramento, CA 95814. Fax: 916-319-2107. Counties: Napa, Solano, SonomaMain Cities: American Canyon, Calistoga, Napa, St. Helena, Santa Rosa, Vallejo, Yountville.

Assemblymember Dave Jones (D) State Capitol, Room 6005, Sacramento, CA 95814. Fax: 916-319-2109. Counties: Portions of Sacramento. Main Cities: Sacramento.

Assemblymember Steve Knight (R) State Capitol, Room 2016, Sacramento, CA. 95814. Fax: 916-319-2136. Counties: Portions of Los Angeles, Portions of San Bernardino. Main Cities: Adelanto, Lancaster, Palmdale, Victorville.

Assemblymember Paul Krekorian (D) State Capitol, Room 4005, Sacramento, CA. 95814. Fax: 916-319-2143. Counties: Portions of Los Angeles. Main Cities: Burbank, Glendale, Los Angeles, North Hollywood.

Assemblymember Ted Lieu (D) State Capitol, Room 3173 Sacramento, CA. 95814. Fax: 916-319-2153. Counties: Portions of Los Angeles. Main Cities: Lomita, Torrance, Redondo Beach, Hermosa Beach, Manhattan Beach, El Segundo, Venice, Westchester, West Los Angeles, Marina Del Rey, Playa Del Ray, Mar Vista.

Assemblymember William Monning (D) State Capitol, Room 5150 Sacramento, CA. 95814. Fax: 916-319-2127. Counties: Portions of Monterey, Portions of Santa Clara, Portions of Santa Cruz. Main Cities: Carmel by the Sea, Monterey, Morgan Hill, Santa Cruz.

Assemblymember Jim Nielsen (R)State Capitol, Room 6031Sacramento, CA 95814Fax: 916-319-2102. Counties: Portions of Butte, Colusa, Glenn, Modoc, Shasta, Siskiyou, Sutter, Tehama, Portions of YoloMain Cities: Alturas, Anderson, Chico, Colusa, Orland, Red Bluff, Redding, Weed, Yuba City.

Assemblymember Cathleen Galgiani (D)State Capitol, Room 5155Sacramento, CA 95814Fax: 916-319-2117. Counties: Merced, Portions of San Joaquin, Portions of StanislausMain Cities: Atwater, Lathrop, Merced, Newman, Stockton, Tracy