Bill Summary for S 518 (2011-2012)
|View NCGA Bill Details||2011-2012 Session|
TO PROTECT CONSUMERS BY REQUIRING BUYER'S CHOICE OF TITLE INSURER AND SETTLEMENT AGENT.Intro. by Vaughan, Stein.
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Enacts new GS 45-45.3, prohibiting a foreclosing mortgagee or a mortgagee who acquires property through a foreclosure proceeding in connection with a judicial foreclosure or foreclosure under power of sale of residential property improved by four or fewer units, from requiring either of the following conditions, as a condition of selling the property: (1) that the buyer purchase an owner’s or lender’s title insurance policy from a particular title insurer or from a title insurer selected or designated by the mortgagee, or (2) that the buyer use a particular settlement agent or a settlement agent selected by the mortgagee. Makes a mortgagee who violates the section liable to the buyer in an amount equal to three times all charges incurred in the buyer’s purchase of the title insurance or retention of a settlement agent. Clarifies that a transaction will not be invalid solely for failure to comply with the statute. Applies to all sales placed under a sales contract on or after the date the act becomes law.