Buyer's Choice Act.

Existing law generally regulates the transfer of real property, and imposes specified obligations on a seller of real property. Existing law authorizes a mortgagee or beneficiary under a deed of trust to sell property securing the mortgage or deed of trust at a foreclosure sale under certain circumstances. Existing federal law prohibits a seller of property that will be purchased with the assistance of a federally related mortgage loan from requiring the buyer to purchase insurance from a particular company. Existing law, the Buyer's Choice Act, prohibits, until January 1, 2015, a mortgagee or beneficiary under a deed of trust who acquired title to residential real property improved by 4 or fewer dwelling units at a foreclosure sale from requiring, directly or indirectly, as a condition of selling the property, that the buyer purchase title insurance or escrow services in connection with the sale from a particular title insurer or escrow agent. These provisions do not prohibit a buyer from agreeing to accept the services of a title insurer or an escrow agent recommended by the seller if written notice of the right to make an independent selection of those services is first provided by the seller to the buyer. This bill would expand the act to apply to property acquired at a short sale. The bill would require a seller to provide to a buyer a specified form containing a statement of the Buyer's Choice Act notification requirements, as specified. The bill would also revise the act to prohibit a seller from conditioning approval of the sale of residential real property acquired at a foreclosure sale or short sale on the selection made by the buyer as indicated on the Buyer's Choice Act form, as specified. The bill would specify the actions that may be taken by a seller when a buyer submits an offer, or selects service providers, and the actions that may be taken by a buyer when a seller accepts the buyer's offer.