Living in Contra Costa County

Buyer's Choice Act hits California!

Buyer's Choice Act hits California!

The Governor just signed emergency legislation that insures the Buyers the Right to Choose Title and Escrow on home purchases.

This applies to residential purchases of less than four units.  If the seller fails to comply they can be held liable for up to three times the cost of Title and Escrow.  Failure to comply does not invalidate the transaction. 

The seller can still recommend Title and Escrow services, but they need to have the buyer sign a disclosure.

This of course is all directed at the banks dictating the services to buyers.  Now will it really change anything? 

I doubt it.  Most banks pay Title & Escrow for the right to choose it.  Most buyers are happy to let the bank pay for it in exchange for letting them choose it.  Furthermore if I buyer gets it in their head that they should use a different Title & Escrow companies who is to say why the bank picks the other buyer instead.  Finally when things get screwed up in Title & Escrow, as they frequently do, it is nice to be able to throw the blame at the banks Title and Escrow Company in order to avoid those nasty late fees.

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8 comments • Gene Riemenschneider East Contra Costa Home Sales 01492725 • October 14 2009 01:03PM

No one knows what to do!

As a Realtor I work 24/7 to keep my clients informed and happy. I only succeed when they succeed. So what is going on with the Title & Escrow Companies?

In these days of Bank Owned Homes dominating the market the banks are dictating who handles Title & Escrow. These transactions are being centralized in a few select Title & Escrow companies. The back log is slowing down the process and the files are being handled like a hamburger at the fast food joint.

Before the banks took over and began to dictate the process Title & Escrow companies were very responsive because they knew that their business depended upon customer service. I recently had to call the home office of a large Escrow company to even get a return phone call on a file that ultimately set around for weeks. I currently have a file where we have been waiting on the preliminary title for about 2 weeks. The real irony is the banks keep calling the listing agent wanting to know why my clients have not signed off on inspections and when we are going to close.

I understand that many people at the Title & Escrow companies are overworked and are forced to handle things in unique and unusual ways by the banks. Although the workers seem to be overworked the price for the services does not seem to be declining. I want you buyers to understand what is going on and it is frequently beyond the control of your Realtor. I try to be the squeaky wheel for my clients, but I suspect there are a lot of squeaky wheels and the Title & Escrow companies are just tuning us out.

Well that is my rant.

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0 comments • Gene Riemenschneider East Contra Costa Home Sales 01492725 • April 01 2009 02:13PM