Texas Real Estate Brokerage Sales Apprentice Education (SAE) Practice Exam

According to RESPA, what should the information provided at closing include to comply?

1. A detailed marketing plan

2. The seller's financial statements

3. Details on settlement costs and credit costs

4. A list of competing properties

The correct answer is: Details on settlement costs and credit costs

The correct answer highlights the requirements set forth by the Real Estate Settlement Procedures Act (RESPA), which is designed to protect consumers in the process of buying a home. RESPA mandates that borrowers receive a clear and detailed explanation of settlement costs and credit costs involved in the closing process. This includes an itemized list of the various fees and charges that the buyer will encounter at the time of settlement. By ensuring that this information is provided, RESPA aims to foster transparency in real estate transactions and helps consumers make informed decisions regarding the financial aspects of their home purchase. Providing a detailed marketing plan, seller's financial statements, or a list of competing properties does not align with RESPA's focus on settlement costs. These elements are not considered necessary disclosures for compliance at closing under RESPA, as they pertain to different areas of the real estate transaction, such as marketing strategy or competitive analysis, rather than the financial obligations of the buyer.