AB 957 Assembly Bill - Bill Analysis
Date of Hearing: April 20, 2009
ASSEMBLY COMMITTEE ON BANKING AND FINANCE
Pedro Nava, Chair
AB 957 (Galgiani) - As Introduced: February 26, 2009
SUBJECT : Residential real estate transfers: title insurance:
SUMMARY : Enacts the Buyer's Choice act. Specifically,
1)Prohibits a mortgagee, beneficiary under a deed of trust, or
other person who acquired title to residential real property
as a foreclosure sale from, as a condition of selling that
real property to a buyer, requiring the buyer to purchase
title insurance or use escrow services in connection with the
sale from a company chosen by a seller.
2)Prohibits a seller from, without good cause, disapproving the
use of a title or escrow company chosen by a buyer.
3)Requires a seller who violates this provision to be liable to
the buyer for a civil penalty in an amount equal to 6 percent
of the sale prices of the property.
4)Defines "seller" as a mortgagee, beneficiary under deed of
trust, or other person who acquired title to residential real
property at a foreclosure sale.
EXISTING FEDERAL LAW:
1)Authorizes federally-chartered financial institutions to
engage in the business of mortgage lending, brokering, and
servicing and governs the rules under which such activities
may be conducted under a wide variety of laws, including, but