What is the primary goal of the Real Estate Settlement Procedures Act (RESPA)?

The primary goal of the Real Estate Settlement Procedures Act (RESPA) is to require clear disclosure of settlement costs to consumers. This legislation was enacted to ensure that buyers and sellers in real estate transactions are fully informed about the costs associated with closing a real estate deal. By mandating detailed disclosures, RESPA helps to promote transparency in the settlement process, allowing consumers to better understand their financial obligations and make informed decisions.

With clear disclosure, consumers can compare costs from different service providers, which can foster competition and potentially lower costs. This transparency also helps to prevent surprise expenses that may arise at the closing table, leading to a more straightforward and reliable transaction process.

This focus on clarity and transparency is vital in protecting consumers and ensuring they are not subjected to undisclosed or excessive fees during real estate transactions.