HB 137

Subject to a right of approval by a mortgage lender, m ortgage loan broker, or mortgage loan servicer, when persons or entities are involved in a real property transaction in this state , this bill authorizes a purchaser or borrower in such transaction to select the settlement agent in connection with the trans action. Such selected settlement agent is exclusive ly authorized to do all of the following:  To provide escrow or closing services in connection with the transfer of interests in real property or the making of loans secured by interests in real property.  To act as the title insurance agency.  To perform those functions and obtain documentation necessary to clear title for the real property involved in the transaction in accordance with those underwriting rules and standards prescribed by the title insurance company that the settlement agent represents. This bill prohibits t he seller in such transaction from requir ing the use of a particular settlement agent by the purchaser in connection to the transaction. Additionally, t his bill prohibits the waiver or modification of all of any of the provisions above . However, this bill does not prohibit a seller from retaining an attorney to represent the seller's best interests and provide legal advice pertaining to escrow or closing services as long as such repr esentation is limited to deed preparation, fee negotiation, review and signing of applicable closing documents, and advising the seller on legal matters related to the escrow or closing process. This bill prohibits t he selected settlement agent from co llect ing any fees from a represented seller payable to the settlement agent or its subsidiaries, affiliates, or subcontractors, other than those fees and reasonable charges related to the clearing of title, without first obtaining the written consent of th e seller's attorney.