KW Atlanta Real Estate Legal Tip: Choosing A Settlement Agent When Buying A Fannie Mae Property

Aaron — Sat, 06 Mar 2010 17:56:42 +0000

Keller Williams Realty Atlanta – Peachtree Road

Real Estate Legal Tip

Presented By:

Now Buyer Can Choose Settlement Agent When Buying a Fannie Mae Property

On October 12, 2009, California passed the Buyer’s Choice Act (Assembly Bill 957), which says that any agency (usually a bank) selling a foreclosed property must let the buyer choose the closing services. The California bill requires the REO seller to provide a disclosure notice to the buyers informing them of their right to choose their own closing attorney or title company and lender.

Based on this new California law, the Federal National Mortgage Association (Fannie Mae) has changed the wording in their “Real Estate Purchase Addendum” to read:

“The closing shall be held at a place so designated and approved by the Purchaser. The Purchaser has the right to make an independent selection of their own attorney, settlement company, escrow company, title company and/or title insurance company in connection with closing.”

Advice to realtors, buyers, and lenders:

If you want to choose your own closing attorney, remember to fill in your choice on the GAR contract and also where indicated as “Purchaser’s Attorney” on the FNMA addendum.

The buyer’s attorney will still coordinate the transaction, title clearance, and delivery of deeds and funds with an attorney representing FNMA. This process should not result in any additional expense to the buyer, and hopefully will provide many buyers and agents with the comfort and convenience of doing business with their own choice of attorney.

Presented by Leigh Clack, Attorney

Neel & Robinson Attorneys at Law, LLC

lenox@neelandrobinson.com

22 Lenox Pointe, Atlanta, GA 30324

404-705-3690 fax 404-705-3697

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