Known as the Buyer's Choice Act this bill, if enacted in its current form, would prevent a person or entity who acquired title to residential real property at a foreclosure sale from, as a condition of the sale, requiring the buyer to purchase title insurance or use escrow services in connection with that sale from a company chosen by the seller. The act would also prohibit the seller from, without good cause, disapproving the use of a title or escrow company chosen by the buyer. A seller who violated these provisions would be liable to the buyer for a specified civil penalty, currently proposed at 6% of the sales price.

The bill will be heard on Monday, April 20, 2009 in the Assembly Banking and Finance Committee. CEA encourages its members to review the bill and to contact your Assembly Member, Committee Member(s) or other legislative contacts regarding your position on the bill. CEA has submitted a letter of support in favor in concept for the ability of principals to choose services and the need for services on a localized basis where possible. At the same time, CEA understands that our members span a diverse group of escrow services providers who may be impacted by this in various ways and that there exists great opportunity for discussion and conversation among our members, allies and other trade associations.

The text of the bill can be found by CLICKING HERE

Thank you!

The link below contains guidance from the Franchise Tax Board concerning the recently enacted tax credit program was received late last Friday. The program is now in effect. Note that although the FTB guidance refers to "escrow persons", the law does not expressly refer to escrow officers. Escrow practitioners should consult with their manager, underwriter or legal counsel for Company specific guidelines, if any.

The FTB link for the tax credit for new/never-occupied homes - http://www.ftb.ca.gov/individuals/New_Home_Credit.shtml

Thank you,

Mike Belote, Esq.
California Escrow Association