What does RESPA Section 9 prohibit?

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Multiple Choice

What does RESPA Section 9 prohibit?

Explanation:
RESPA Section 9 stops a seller from making the sale depend on the buyer using a specific title company. In other words, a seller can’t condition the deal on the buyer using a particular title company, which protects the buyer’s freedom to choose and prevents coercive arrangements that could steer the transaction for the seller’s benefit. The other scenarios aren’t what Section 9 covers: choosing a real estate agent, who pays closing costs, or banning title insurance aren’t prohibited by this provision. The key point is the seller’s prohibition on tying the sale to a specific title company.

RESPA Section 9 stops a seller from making the sale depend on the buyer using a specific title company. In other words, a seller can’t condition the deal on the buyer using a particular title company, which protects the buyer’s freedom to choose and prevents coercive arrangements that could steer the transaction for the seller’s benefit.

The other scenarios aren’t what Section 9 covers: choosing a real estate agent, who pays closing costs, or banning title insurance aren’t prohibited by this provision. The key point is the seller’s prohibition on tying the sale to a specific title company.

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