What must sellers provide buyers according to the requirements of RESPA?

What must sellers provide buyers according to the requirements of RESPA?

• A. Sale prices of similar properties
• B. Clear information about settlement costs
• C. Ownership history of appliances in the property
• D. Availability of mortgage options

Answer: (B)

The correct answer highlights a critical requirement of the Real Estate Settlement Procedures Act (RESPA), which mandates that sellers provide clear information about settlement costs to buyers. RESPA aims to promote transparency in the real estate transaction process, ensuring that buyers are fully informed about the various costs associated with their property purchases. By requiring sellers to disclose accurate settlement costs, buyers can better understand the financial implications of their transaction, including fees for services like title insurance, escrow, and other closing costs. This clear information is essential for buyers to make informed decisions and to prepare for their financial obligations during the home-buying process. The other options, while related to aspects of real estate transactions, do not fall under the specific obligations set by RESPA. Providing sale prices of similar properties, ownership history of appliances, or the availability of mortgage options may be important in the buying process but are not explicitly required disclosures under RESPA. Thus, the focus on settlement costs represents a key component of buyer protection that RESPA seeks to enforce.

The correct answer highlights a critical requirement of the Real Estate Settlement Procedures Act (RESPA), which mandates that sellers provide clear information about settlement costs to buyers. RESPA aims to promote transparency in the real estate transaction process, ensuring that buyers are fully informed about the various costs associated with their property purchases.

By requiring sellers to disclose accurate settlement costs, buyers can better understand the financial implications of their transaction, including fees for services like title insurance, escrow, and other closing costs. This clear information is essential for buyers to make informed decisions and to prepare for their financial obligations during the home-buying process.

The other options, while related to aspects of real estate transactions, do not fall under the specific obligations set by RESPA. Providing sale prices of similar properties, ownership history of appliances, or the availability of mortgage options may be important in the buying process but are not explicitly required disclosures under RESPA. Thus, the focus on settlement costs represents a key component of buyer protection that RESPA seeks to enforce.