SACRAMENTO, Calif., Oct. 13 /PRNewswire/ — The Escrow Institute of California announced today that Governor Schwarzenegger signed Assembly Bill 957 into law. This bill, authored by Assembly Member Cathleen Galgiani (D-Tracy), protects consumers by ensuring that they have the right to choose their own real estate service providers when purchasing foreclosed properties.
AB 957, known as the Buyer’s Choice Act, prohibits sellers of so-called REO
properties – typically foreclosed properties owned by banks – from requiring
the buyer to use a particular title company, escrow settlement or other real
estate service provider. This unethical, anti-competitive practice drives up
costs for homebuyers and takes business away from locally owned companies. The problem has become particularly acute in the Central Valley and Inland Empire, areas that have faced some of the highest foreclosure rates in the country.
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