Escrow & Title

RESPA (Real Estate Settlement Procedures Act) prohibits:

ACharging buyers for title insurance
BPaying or receiving kickbacks or referral fees for settlement services✓ Correct
CRequiring an escrow account for property taxes
DSellers from paying buyer's closing costs

Explanation

RESPA prohibits kickbacks, fee-splitting, and referral fees among settlement service providers (lenders, title companies, attorneys, etc.) unless they are for actual services rendered. Section 8 of RESPA is the anti-kickback provision.

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