Escrow & Title
RESPA (Real Estate Settlement Procedures Act) prohibits which of the following practices in Rhode Island real estate closings?
ACharging for title insurance
BKickbacks and unearned fees paid between settlement service providers✓ Correct
CRequiring the buyer to use a specific lender
DCharging a broker commission
Explanation
RESPA prohibits kickbacks, referral fees, and unearned fees exchanged between settlement service providers (lenders, title companies, appraisers, etc.) as they inflate closing costs without benefiting consumers.
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