CAN A SELLER REQUIRE A BUYER TO USE A PARTICULAR TITLE COMPANY? YES AND NO
Section 9 of the Real Estate Settlement Procedures Act (RESPA) prohibits a seller from requiring a 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 insurance. However, a seller can offer certain incentives for the use of a particular title company but the seller cannot require that a particular title insurance company be used by the buyer as a condition of the sale unless the seller pays 100% of all title insurance and related title costs. The CFPB has issued guidance stating that if the seller requires the buyer to use a title company (without offering an incentive), unless the seller pays 100% of the title-related costs then the seller has violated RESPA. Even if the seller offers to purchase the owner’s title insurance policy for the buyer, there can still be a violation of RESPA if the buyer must purchase the lender’s title insurance policy.
affidavit of title ASSIGNMENT AGREEMENT BUYERS commercial real estate contract for deed DEATH AND REAL ESTATE Deed estate planning estate planning real estate trends FSBO future of commercial real estate Future of real estate GENERAL WARRANTY DEED home buying Home seller home selling inheritance KC real estate LANDLORD Landlords land use midwest real estate PROBATE Property Management PROPERTY SURVEY real estate closing real estate contracts real estate deeds Real estate deed work real estate ethics real estate finance Real estate financing real estate investing real estate lawyer real estate management real estate market real estate markets real estate planning real estate transactions real estate trends seller financing SELLERS TENANTS IN COMMON TRANSFER ON DEATH DEED wholesale real estate
- OUR LAWFIRM OFFERS ONLINE VIRTUAL MEETINGS
- IS A CONTRACT VALID IF NO EARNEST MONEY IS EXCHANGED?
- VOID VS VOIDABLE CONTRACTS
- WHAT IS A TITLE COMMITMENT?
- WHAT ARE CLOSING COSTS IN A REAL ESTATE TRANSACTION?