BILL NUMBER: AB 957INTRODUCED BILL TEXT INTRODUCED BY Assembly Member Galgiani FEBRUARY 26, 2009 An act to add Article 1.8 (commencing with Section 1103.20) to Chapter 2 of Title 4 of Part 4 of Division 2 of the Civil Code, relating to real property. LEGISLATIVE COUNSEL'S DIGEST AB 957, as introduced, Galgiani. Residential real estate transfers: title insurance: escrow companies. Existing law generally regulates the transfer of real property, and imposes specified obligations on a seller of real property. Existing law authorizes a mortgagee or beneficiary under a deed of trust to sell property securing the mortgage or deed of trust at a foreclosure sale under certain circumstances. Existing federal law prohibits a seller of property that will be purchased with the assistance of a federally related mortgage loan from requiring the buyer to purchase insurance from any particular company. This bill would enact the Buyer's Choice Act, which would prohibit a mortgagee, beneficiary under a deed of trust, or other person who acquired title to residential real property at 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 the seller. The act would also prohibit such a seller from, without good cause, disapproving the use of a title or escrow company chosen by a buyer. A seller who violates these provisions would be liable to the buyer for a specified civil penalty. Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Article 1.8 (commencing with Section 1103.20) is added to Chapter 2 of Title 4 of Part 4 of Division 2 of the Civil Code, to read: Article 1.8. Buyer's Choice Act 1103.20. This article shall be known, and may be cited, as the Buyer's Choice Act. 1103.21. (a) A seller shall not, directly or indirectly, as a condition of selling residential real property to a buyer, require the buyer to purchase title insurance or use escrow services in connection with the sale of that property from a company chosen by the seller. (b) A seller shall not, without good cause, disapprove the use of a title or escrow company chosen by a buyer. (c) A seller who violates subdivision (a) or (b) shall be liable to the buyer for a civil penalty in an amount equal to 6 percent of the sales price of the property. (d) For purposes of this section, "seller" means a mortgagee, beneficiary under a deed of trust, or other person who acquired title to residential real property at a foreclosure sale.