What is a primary requirement of RESPA?

The primary requirement of the Real Estate Settlement Procedures Act (RESPA) is the disclosure of closing costs. RESPA was enacted to ensure that consumers are provided with pertinent information about the costs associated with the settlement process in real estate transactions. This includes itemized disclosures of all costs that will be incurred at closing, helping to prevent hidden fees and allowing buyers and sellers to better understand and compare costs involved in the transaction.

By mandating these disclosures, RESPA promotes transparency in the settlement process, ensuring that buyers are fully informed about the various fees they will be responsible for during the closing of a property purchase. This requirement helps to protect consumers from being overcharged and enhances their ability to make educated decisions when it comes to real estate transactions.

While disclosure of lender requirements, home inspection reports, and approval of buyer financing are all important aspects of real estate transactions, they do not fall under the primary directives established by RESPA focused specifically on closing costs and related disclosures.