Just a heads up for any buyers as I see this law being broken quite often right now with Short sales. Just a little information to help keep you informed:
RESPA prohibits a seller from requiring the home buyer to use a particular title insurance company as a condition of sale. Generally, the lender will require title insurance. The borrower can shop for and choose a company. However, if the seller is paying for the owner's title insurance policy, the law does not prohibit the seller from choosing the title company.
Bobby J
The Beach Group
850-865-7798
Replies
2
SoWal Expert
I'm amazed at what a small handful of agents are stating about this and other so-called "requirements" in their listings. Love it when they "require" that the buyer pays another company to do the short sale work for the agent.
Beach FanaticAuthor
I'm amazed at what a small handful of agents are stating about this and other so-called "requirements" in their listings. Love it when they "require" that the buyer pays another company to do the short sale work for the agent.
That should be your first warning sign that something is not right. I do believe a buyer going into a short sale should be committed with a real EMD though. It helps determine whether we are wasting our time or not but to pay the short sale attorney seems a bit odd to me.
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