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

What does RESPA primarily aim to eliminate in real estate transactions?

1. Property inspections

2. Misleading advertising

3. Kickbacks

4. Unequal pricing

The correct answer is: Kickbacks

RESPA, which stands for the Real Estate Settlement Procedures Act, primarily aims to eliminate kickbacks and referral fees that can lead to increased costs for consumers in real estate transactions. The law was enacted to promote transparency and ensure that buyers and sellers receive a fair presentation of the costs associated with purchasing a home. By focusing on eliminating these types of financial incentives, RESPA seeks to reduce instances where referral fees can influence the choices of real estate service providers, ultimately protecting consumers from inflated costs that do not reflect fair market values or genuine service rendered. The other options, while relevant to the broader discussion of real estate practices, do not align with the core purpose of RESPA. Property inspections are important for ensuring the condition of a property but are not the focus of RESPA. Misleading advertising is governed by other regulations aimed at truth in advertising rather than specifically addressed by RESPA. Unequal pricing could fall under the broader umbrella of fair housing laws but does not represent the primary focus of RESPA legislation.