RESPA Section 9, Buyer can choose the Title Company!

By
Real Estate Agent with RLO Millennium Real Estate and Mortgage.

RESPA Section 9, Buyer can choose the Title Company!

Therefore do not let the seller's broker/agent dictate to your buyers where to close and which title company to choose!

Your buyers can choose the title company!

Here's the reason:

As stated in Section 9 of RESPA!

(a) No seller of property that will be purchased with the assistance of a federally related mortgage loan shall require directly or indirectly, as a condition to selling the property, that title insurance covering the property be purchased by the buyer from any particular title company.

(b) Any seller who violates the provisions of subsection (a) of this section shall be liable to the buyer in an amount equal to three times all charges made for such title insurance!

Seller's broker/agent be aware and be afraid!

This is just FYI only!

Thanks

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Topic:
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respa section 9

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Rainer
38,385
Kelly Milligan
First Title Real Estate, LLC

Hi Adam, this is a hot topic.  I have wondered when the seller is paying a percentage of the purchaser's closing costs (3-6%) would the seller then have input to where they close?  They are already meeting and most of the time exceeding the RESPA requirement.  I think they can in this situation.  What is your opinion?

Thanks for the post.

September 06, 2010 11:34 AM
Rainmaker
625,785
Adam Malachi
QSC,CDPE,CIPS,CNE,CRB,CRS,GRI,MRE,SFR
RLO Millennium Real Estate and Mortgage.

Hello Kelly,

It's very hot topic! Closing cost is part of the purchase price! Most of the time the seller does not know any title company unless they are investor or REO! All the time the listing agent/broker dictates to us where to close, they have no right doing it! But they do it anyway!

Thanks for stopping by!

Adam

September 06, 2010 02:52 PM
Anonymous #7
Anonymous
Le Thi Velazquez

Thank you for emphasizing the information.  I agree with you 100%. It's a common every day practice of listing agent/Seller directing Buyer to particular title company right here in Texas. I have been talking about this matter for years; however, no one listens to me. Hope all agents cross the country know and comply with this law.

Le Thi Velazquez/Keller Williams Realty Heritage

 

March 28, 2011 12:19 PM
Anonymous #8
Anonymous
Diana Huntress
If it's an all cash sale, must the buyer still choose the title co?
February 24, 2014 07:52 PM
Rainmaker
625,785
Adam Malachi
QSC,CDPE,CIPS,CNE,CRB,CRS,GRI,MRE,SFR
RLO Millennium Real Estate and Mortgage.

Hello Diana,

RESPA Section 9 says: "RESPA prohibits a seller from requiring the home buyer to use a particular title insurance company, either directly or indirectly, as a condition of sale. Buyers may sue a seller who violates this provision for an amount equal to three times all charges made for the title".

Yes the buyer can still choose the title comapny,

Thanks for stopping by with you comments.

Adam

February 24, 2014 08:54 PM
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Rainmaker
625,785

Adam Malachi

QSC,CDPE,CIPS,CNE,CRB,CRS,GRI,MRE,SFR
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