CAN A SELLER REQUIRE A BUYER TO USE A PARTICULAR TITLE COMPANY?

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.

ADMINISTRATORS DEED ADMINISTRATORS DEED IN MISSOURI AFFIDAVIT OF SURVIVORSHIP affidavit of title ASSIGNMENT AGREEMENT ASSUMPTION AGREEMENT Benefits of owner financing BUYERS CLOSING DOCUMENTS COMMON LAW MARRIAGE contract for deed COVID AND EVICITION DEATH AND REAL ESTATE Deed DOCUMENTS TO EXPECT AT CLOSING EFFECTS OF INFLATION ON REAL ESTATE EVICITION RULES EXECUTORS DEED EXECUTORS DEED IN MISSOURI FINAL WALKTHOUGH future of commercial real estate GENERAL WARRANTY DEED HOW TO REMOVE A LIS PENDENS NOTICE INFLATION LANDLORD LIS PENDENS ORAL AGREEMENT FOR SALE OF REAL ESTATE IN MISSOURI ORAL AGREEMENTS IN MISSOURI Owner financing PRECLOSING WALKTHROUGH PROBATE REAL ESTATE AND ORAL AGREEMENTS REAL ESTATE CLOSING DOCUMENTS RENTAL CRISIS seller financing SELLERS SPECIAL WARRANTY DEED STATUTE OF FRAUDS SURVIVORSHIP AFFIDAVIT TENANT TENANTS IN COMMON TRANSFER ON DEATH DEED WARRANTY DEED WHAT IS A FINAL WALKTHOUGH? wrap around mortgage

December 2021
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