ContractsIntermediateDelaware Exam

In Delaware, which party generally controls the choice of settlement company in a residential transaction?

AThe lender always selects the settlement company
BRESPA gives either party the right to choose; the party paying typically selects, and sellers cannot require buyers to use a specific companyCorrect
CThe listing broker always selects the settlement company
DThe buyer's own attorney must always personally serve as the settlement agent in every Delaware transaction, as is typical in most transactions

Why RESPA gives either party the right to choose; the party paying typically selects, and sellers cannot require buyers to use a specific company Is Correct

Answer B: RESPA gives either party the right to choose; the party paying typically selects, and sellers cannot require buyers to use a specific company

Under RESPA, a seller cannot require the buyer to use a specific title company or settlement service provider as a condition of the sale. Delaware is an attorney closing state, so an attorney must supervise the closing.

Exam Tip: Contracts

Contract questions frequently test the essential elements required for a valid contract. Remember: competent parties, mutual consent, lawful object, and sufficient consideration. Watch for void vs. voidable distinctions.

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