BILL NUMBER: AB 957	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 26, 2009
	AMENDED IN SENATE  JUNE 16, 2009
	AMENDED IN ASSEMBLY  MAY 14, 2009
	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, and to repeal
Section 1103.21 of, the Civil Code, relating to real property, and
declaring the urgency thereof, to take effect immediately.


	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, until January 1, 2015, a mortgagee  , 
 or  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 receiving offers or selling
that real property to a buyer, requiring the buyer to purchase title
insurance  , escrow services, or a Natural Hazard Disclosure
Statement   or escrow services  in connection with
the sale from a company chosen by the seller. A seller who violates
these provisions would be liable to the buyer for an amount equal to
3 times all charges made for the title insurance  , escrow
services, or Natural Hazard Disclosure Statement  or
escrow services  .
   This bill would declare that it is to take effect immediately as
an urgency statute.
   Vote: 2/3. 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 receiving offers or selling residential real property to
a buyer, require the buyer to purchase title insurance  ,
escrow services, or a Natural Hazard Disclosure Statement 
 or escrow services  in connection with the sale of that
property from a company chosen by the seller.
   (b) For purposes of this section, "seller" means a mortgagee
 , beneficiary under a deed of trust, or other person
  or beneficiary under a deed of trust  who
acquired title to residential real property at a foreclosure sale,
including a trustee, agent, officer, or other employee of any such
mortgagee  , beneficiary, or other person   or
beneficiary  .
   (c) A seller who violates this section shall be liable in an
amount equal to three times all charges made for the title insurance
 , escrow service, or a Natural Hazard Disclosure Statement
  or escrow service  . In addition, any person who
violates this section shall be deemed to have violated his or her
license law and shall be subject to discipline by his or her
licensing entity.
   (d) A transaction subject to this section shall not be invalidated
solely because of the failure of any person to comply with any
provision of this act. 
   (e) This section does not affect any duty or obligation that
follows from Section 1103.1, nor any liability waived pursuant to
Section 1103.4.  
   (f) 
    (e)  This section shall remain in effect only until
January 1, 2015, and as of that date is repealed, unless a later
enacted statute, that is enacted before January 1, 2015, deletes or
extends that date.
  SEC. 2.  This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect. The facts constituting the necessity are: 
   In order to enact provisions designed to ensure that residential
homebuyers are not required to purchase title insurance, escrow
services, or a Natural Hazard Disclosure Statement as soon as
possible, it is necessary that this act take effect immediately.
 
   In order to enact provisions designed to ensure that a seller does
not require a residential homebuyer to purchase title insurance or
escrow services from a particular company, as soon as possible, it is
necessary that this act take effect immediately.