Bill Text: NC S518 | 2011-2012 | Regular Session | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Landlord/State Bar Notice of Lease Default

Spectrum: Slight Partisan Bill (Democrat 2-1)

Status: (Passed) 2012-06-26 - Ch. SL 2012-76 [S518 Detail]

Download: North_Carolina-2011-S518-Introduced.html

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GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 2011

S                                                                                                                                                    D

SENATE DRS75100-MD-43A  (02/12)

 

 

 

Short Title:        Buyer Choice/Title Insurer & Settlement Agent.		(Public)
Sponsors:	Senators Vaughan and Stein (Primary Sponsors).
Referred to:

 

 

A BILL TO BE ENTITLED

AN ACT to protect consumers by requiring buyer's choice of title insurer and settlement agent.

The General Assembly of North Carolina enacts:

SECTION 1.  Chapter 45 of the General Statutes is amended by adding a new section to read:

"§ 45‑45.3.  Buyer's choice of title insurer and settlement agent.

(a)        Prohibited Acts. – In connection with a judicial foreclosure or foreclosure under power of sale of residential property improved by four or fewer dwelling units, no foreclosing mortgagee or mortgagee who acquires the property through a foreclosure proceeding shall require, directly or indirectly, as a condition of selling the property, either of the following:

(1)        That the buyer purchase an owner's or lender's title insurance policy covering the property from a particular title insurer or from a title insurer selected or designated by the foreclosing mortgagee or mortgagee who acquires the property through the foreclosure proceeding.

(2)        That the buyer's settlement be handled by a particular settlement agent or by a settlement agent selected or designated by the foreclosing mortgagee or mortgagee who acquires the property through the foreclosure proceeding.

(b)        Liability for Violation. – A foreclosing mortgagee or mortgagee who acquires the property through a foreclosure proceeding who violates this section shall be liable to a buyer in an amount equal to three times all charges incurred in the buyer's purchase of the title insurance or the buyer's retention of a settlement agent.

(c)        Violation Does Not Invalidate Transaction. – A transaction subject to this section shall not be invalidated solely because of the failure of any person to comply with any provision of this section."

SECTION 2.  This act is effective when it becomes law and applies to all sales placed under a sales contract on or after that date.