Ace the Texas Law Module 2026 – Smash the 20-Hour Power Test!

Question: 1 / 400

What is the purpose of the Real Estate Settlement Procedures Act?

To provide legal definitions of real estate terms

To ensure transparency in the settlement process

The Real Estate Settlement Procedures Act (RESPA) was enacted to promote transparency and protect consumers during the settlement process involved in buying a home. This act requires that borrowers receive clear and concise disclosures about the costs associated with their real estate transactions. It aims to inform consumers about the various fees they will encounter, provide details about the handling of escrow accounts, and ensure they can make informed decisions throughout the closing process.

By ensuring transparency, RESPA helps to prevent abusive practices and allows consumers to compare costs and understand their rights. Thus, the essence of the act revolves around providing important information that can help avoid surprises at closing and foster trust in the real estate market.

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To regulate real estate agents' commissions

To determine property tax rates

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