Practice Management

RESPA: ?It?s my closing--and I?ll close how I want to.?

By Dan Hull

Hopkins v. Horizon Management (U.S. 4th Cir. December 3, 2008). In the five states subsumed by the U.S. Fourth Circuit--Maryland, Virginia, West Virginia and the Carolinas--a bank can exercise control over the sale of its properties by having the same title company perform all of the bank's real estate closings without violating Section 9 of federal Real Estate Settlement Procedures Act, 12 U.S.C. 2608, 2601-2617. A contract for sale that forces a buyer to use a particular title company is enforceable so long as the bank foots the bill for the owner?s title insurance. Although Hopkins is an unpublished opinion, this interpretation of RESPA's Section 9 will likely stick for these five states; it can also be expected to be followed in other states and circuits.

Note: Arlington, Virginia-based Robert E. Bodine recently became of counsel to Hull McGuire.

Full post as published by What About Clients? on March 10, 2009 (boomark / email).