BILL NUMBER: AB 957	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 22, 2009

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 amended, 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
  sale, including a trustee, agent, officer, or other
employee of an   y such mortgagee, beneficiary, or other
person  .