Got an accepted offer on an REO property for my buyers.....with a pleasant surprise....
We wrote a good, strategic offer for my buyers on a bank-owned REO property. We got a counter which was do-able, and signed off.
And then, as customary, we received the bank addendum. We read that with a fine tooth comb, and nothing that is out of the ordinary for a bank addendum. (VERY important to read the bank addendum carefully, multiple times)
However, there was an additional addendum entitled "Notice Regarding Buyer's Right to Select Escrow Agent and/or Title Insurer"
About a year ago, the laws changed in the state of California, specifically CA AB 957 - Buyer's Choice Act - that mandate the buyers to have the right to choose escrow and title. I wrote a blog about this a while ago.
I was pleasantly surprised to see this addendum, and basically if the buyers want, they can choose escrow and title.
The only caviat is that if they want escrow and title, we need to fill out another C.A.R. addendum stating such and submit the seller's portion of the escrow fees.
The seller (bank) can accept these fees, reject them, or counter them. And my assumption is that they probably compare those fees to the fees they will pay with their in-house escrow (which is very aggressive in pricing due to their economies of scale and affiliation with the bank) and title in making their decision.
As it turns out, the bank's title company is the same as our in-house title company, which is Lawyers Title, and they are one of the most reputable title companies around. So my buyers are going with the bank's providers while at the same time not rocking the boat.
I knew about the change in laws but it was very cool to see tangible proof of those laws come to fruition first hand.
