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

The Real Estate Settlement Procedures Act (RESPA) primarily aims to ensure transparency in the settlement process for real estate transactions. By mandating the disclosure of various settlement costs and procedures to buyers and sellers, RESPA helps them understand the fees associated with closing a property transaction, which can include loan origination fees, title insurance, and other closing costs. This transparency is designed to protect consumers from abusive practices and gives them the necessary information to make informed decisions during the settlement process.

In this context, focusing on disclosure allows potential homeowners to be more educated about what they are paying for and why, ultimately fostering a fairer marketplace. The act emphasizes the need for proper documentation and communication to navigate the complexities inherent in real estate transactions effectively.