HB 1319

Abstract

Amends the Title Insurance Act. Creates a definition of "residential real property". Provides that no provider of title insurance shall, as a condition of making a loan, providing services of any kind, including, but not limited to, services as a broker, agent or lender, or otherwise, require a party to a contract for the sale of residential real property who is obligated by that contract to pay for title insurance to procure such insurance from a title insurance company or agent other than a title insurance company or title insurance agent that is chosen by the party paying for such insurance. Provides that unless otherwise agreed by the parties to a contract for the sale of residential real property, in any transaction concerning the sale and purchase of residential real property where the purchaser has obtained purchase money financing that is contemplated to be secured by a lien or liens in the nature of a purchase money mortgage or mortgages, the owner's title insurance policy and the lender's title insurance policy shall be provided by the same title insurance company or title insurance agent. Provides that in any transaction concerning the sale and purchase of residential real property the title insurance company, title insurance agent, escrow agent, and independent escrowee shall disclose in writing to the parties, to their attorneys, or within the contract, all costs and charges that are made by such title insurance company, title insurance agent, escrow agent, or independent escrowee and that are related to settlement services, title insurance, or lender endorsement requirements, not less than 10 days prior to the date of settlement. Provides that any such cost or charge that is not disclosed as provided herein shall not be required to be paid by any party to the transaction. Effective immediately.