« Tax Law - Illinois ROTA/Use Taxes | Main
Monday
Oct072013

Real Estate - HUD's Buyer Select Program

Under HUD's new Buyer Select Program, effective March 1, 2013, for Cook and the collar counties, Buyers may choose their own closing agent.  Currently, three asset managers administer the program for HUD in Illinois.  The closing agent will generally be either the Buyer's attorney, or the closing/escrow agent for the title company.  The closing agent will be responsible for, among other things, the preparation of the Seller's closing statement (a RESPA or HUD-1 form), the preparation of the Deed, clearing exceptions to title, and advancing costs for any pre-closing expenses.  HUD is not represented by an attorney in the transaction, so therefore, many of the tasks now typically handled by the Seller's attorney (deed and RESPA preparation, for example) will be handled instead by the Buyer's attorney or the closing/escrow agent. Ralph J. Schumann, President of the Illinois Real Estate Lawyers' Association, has sent a letter to the three major Illinois title companies contending that the new program may be violative of Illinois law in that it may facilitate the unauthorized practice of law by non-attorney closing agents, and may perhaps also result in dual representation issues and/or conflicts of interest for the Buyer's attorney.  (A complete copy of his May 14, 2013, letter can be found on IRELA's website.)  IRELA has requested that instead, HUD (as the Seller) be represented in Illinois by an Illinois lawyer.  HUD and the title companies have not yet responded to the letter.  

References (15)

References allow you to track sources for this article, as well as articles that were written in response to this article.

Reader Comments (1)

The buyer select program will definitely reduce the gap between buyer and real estate agents. The best part of program is "Buyers may choose their own closing agent.". This will definitely give the whole program more flexibility.

August 18, 2015 | Unregistered CommenterAman

PostPost a New Comment

Enter your information below to add a new comment.

My response is on my own website »
Author Email (optional):
Author URL (optional):
Post:
 
Some HTML allowed: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <code> <em> <i> <strike> <strong>