14.30 RESPA Section 9 - Seller Required Title Insurance
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RESPA Section 9 prohibits a seller from requiring the homebuyer to use a particular title insurance company, either directly or indirectly, as a condition of sale. Buyers may sue a seller who violates this provision for an amount that is equal to three times all charges made for the title insurance.
It has long been the practice for certain listing agents to indirectly (through the seller) require that a particular title company be used as a condition of the sale. This practice is prohibited under RESPA, Section 9. Although this is prohibited, this may be challenging to enforce under certain conditions such as multiple offers on a property or a seller who has title binders in place.
