I may have helped this become a reality
Of my many complaints about adverse changes in the real estate industry, my number one complaint has been buyers being forced by banks to use No Name Escrow companies. These (bank (REO) chosen) escrow companies were often far away, usually in S. California and they provided terrible service and delayed escrows. So, I was shocked and angered when CAR, our Realtor organization, issued a “red alert” opposing bill AB 957, which gives the buyer the right to choose escrow. I couldn’t believe it.CAR didn’t react to HVCC, MDIA or other counter-productive rules and laws, but this was the ONE thing they chose to fight — the buyer’s right to choose escrow!
So I called and wrote many emails, but I didn’t say what CAR suggested. I understand that my emails and letters were shared among some legislators. This is one of them I wrote to the sponsor of the bill.
Hello, I want to say THANK YOU to Assemblywoman Galgiani and team, for your creation of this bill. I have registered my complaint with CAR and to some of their lobbyists in Sacramento. How dare they??? They haven’t seen how we have lost all of our local escrow companies, including Chicago Title, First American Title, Fidelity Title, Placer Title and more. We now have one escrow company in our town and I haven’t been allowed to use them by one REO, yet. There is no ”even playing field”. REOs demand to chose escrow/title and they almost always prevail. They put late fees in the contract, and then chose S. CA escrow companies that make you late. Their service is terrible and they ALWAYS DELAY ESCROW, sometimes at a large cost to the buyer. Now, REOs are starting to dictate who the lender is, too, saying that while you can use your own lender, you must first get approved with their lender. They must be corralled. However, CAR says they might consider supporting your bill if there was a “sunset clause” that terminated this law upon stability of the RE industry. Please consider this . . . Normalcy will return, within 2-3 years, and this law would no longer be needed. A little compromise might be in order, here. I THANK YOU FOR YOUR BILL, AND SAY, KEEP AT IT . . . WE NEED YOUR HELP.
WE WON!! The Governor just signed AB-957 into law. An overview of the law is as follows:
