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

What was one of the primary goals of The Real Estate Settlement Procedures Act (RESPA) introduced in 1974?

1. Improve real estate marketing

2. Educate consumers about settlement services

3. Enhance agent commissions

4. Standardize property appraisal processes

The correct answer is: Educate consumers about settlement services

The Real Estate Settlement Procedures Act (RESPA) was established to promote transparency in the real estate settlement process, primarily focusing on educating consumers about the costs and procedures involved in real estate transactions. One of its primary goals is to ensure that consumers receive information about the various settlement services, including the costs associated with these services, so they can make informed decisions. By requiring disclosures regarding settlement costs and practices, RESPA aims to provide consumer protection and help to eliminate abusive practices within the settlement process. The other options, while they relate to aspects of real estate or its practice, do not align with the core mission of RESPA. Improving real estate marketing does not directly relate to consumer education about settlement methods. Enhancing agent commissions is not a focus of RESPA, as it aims to prevent kickbacks and unearned fees that could inflate costs for consumers. Standardizing property appraisal processes, while important in real estate, falls under different regulations and does not address the primary purpose of informing and protecting consumers during the settlement phase.