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 Although Hopkins is an unpublished opinion, this interpretation of RESPA’s Section 9 will likely stick for these five states; it can also be expected to be followed in other states and circuits.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.