Monday, July 26, 2010

Seller cannot require use of title company

A federal statute called RESPA disallows a seller in a residential real estate transaction that is purchased with almost any mortgage from requiring the buyer to utilize a given title company as a condition of sale. This is a situation that we are seeing more and more in the REO adhesion contract world within which we are currently operating. HUD also has regulations that speak to this issue and have requested public comment on the definition of required use. To see HUD's request for comments click here and please make your voice heard.