AB 957 “The Buyers Choice Act” Passes

October 20, 2009 by Heidi Franklin  

    

Governor Schwarzenegger signed Assembly Bill 957 into law. This bill, authored by Assembly Member Cathleen Galgiani (D-Tracy), protects consumers by ensuring that they have the right to choose their own real estate service providers when purchasing foreclosed properties.

AB 957, known as the Buyer’s Choice Act, prohibits sellers of  REO properties – typically foreclosed properties owned by banks – from requiring the buyer to use a particular title company, escrow settlement or other real estate service provider. This unethical, anti-competitive practicedrives up costs for homebuyers and takes business away from locally owned companies. The problem has become particularly acute in the Central Valley and Inland Empire, areas that have faced some of the highest foreclosure rates in the country. Recent data indicate that 11 of the nation’s top 20 foreclosure rates  are in California metropolitan areas.