What does RESPA stand for?

The correct response identifies RESPA as the Real Estate Settlement Procedures Act. This federal law was enacted to ensure transparency in the real estate settlement process, primarily for residential properties. It requires that consumers receive disclosures regarding the costs associated with the settlement process. This helps to prevent any potential abuses in the real estate settlement process and ensures that homebuyers are well-informed about their transactions.

By requiring detailed disclosures, RESPA aims to facilitate better decision-making for consumers and to promote fair practices within the real estate industry. Knowing the full name of RESPA is essential for real estate professionals, as it guides their compliance practices and helps them inform clients accurately.