August 17, 2010
The Buyer’s Choice Act was passed by the Legislature last year to prohibit a mortgagee or beneficiary under a residential deed of trust acquiring title at a foreclosure sale from requiring a buyer paying for settlement services to purchase title insurance or escrow services in connection with a subsequent sale from a particular title insurer or escrow agent.
Legislation introduced this year (Assembly Bill 1720) by the bill’s original author, Assembly member Galgiani, would have made revisions to the Act. The revisions would have required a specific disclosure notice of the buyer’s rights and expanded the law to short sales. The bill failed to meet a deadline for moving out of the Senate Banking and Finance Committee.