Something Your Buyers Should Know About Title Before Closing On A REO Property
Categories: Buying Real Estate, Real Estate News, Title Information
hiThe REO lender cannot require, as a condition of sale, that the buyer purchase title insurance from a particular title company. The buyer of REO property has a right to choose the closing and title company and pay for buyers own title policy. Section 9 of 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. In fact, a clause in a purchase agreement that has the effect of forcing the buyer to obtain and pay for a title insurance policy from a specific title company is illegal. The only way a seller can ask that a buyer use a particular title company is if the seller pays 100% of all title insurance and related title costs. We urge buyers to stand up for their right to choose the title company if the buyer will pay for the policy.
For additional information please contact Marisa Pia Capua of EWM Title at 305.960.3067.
