Escrow & Title
RESPA prohibits:
ASellers from paying buyer's closing costs
BKickbacks and unearned fees between settlement service providers✓ Correct
CBuyers from choosing their own title company
DBrokers from charging administrative fees
Explanation
RESPA (Real Estate Settlement Procedures Act) prohibits kickbacks and unearned fees between settlement service providers (such as referral fees between title companies and lenders). It also requires lenders to provide Loan Estimates and Closing Disclosures.
Related California Escrow & Title Questions
- Which type of deed provides the MOST protection to the buyer?
- What is a 'cloud on title'?
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- What is a warranty deed?
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