Maryland Land Title Association Pre-Licensing Complete Practice Test 2025

Question: 1 / 400

Which of the following examples is prohibited by the RESPA?

Providing rental assistance programs

Offering kickbacks and referral fees

Offering kickbacks and referral fees is prohibited by the Real Estate Settlement Procedures Act (RESPA) because it aims to eliminate practices that can inflate the costs of real estate transactions and undermine the integrity of the settlement process. RESPA was established to protect consumers from unnecessary costs and to ensure transparency in the real estate settlement process. Kickbacks and referral fees can create conflicts of interest, where real estate professionals may prioritize their financial gain over the best interests of their clients. By prohibiting these practices, RESPA promotes fair competition and ensures that consumers receive accurate and comprehensive information about their options and costs during real estate transactions.

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Encouraging competitive bids

Educating consumers about the settlement process

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