The primary aim of the Real Estate Settlement Procedures Act of 1974 (RESPA) is to provide consumers with a better opportunity to shop for settlement services. This legislation was designed to promote transparency in the real estate transaction process, particularly regarding the costs associated with mortgage loans and settlement services. By requiring lenders and settlement service providers to disclose key information, RESPA allows consumers to make more informed choices about the services they may need.
This is significant because many buyers may not be fully aware of the range of services available to them or the associated costs. By fostering competition among service providers, RESPA ultimately aims to reduce costs for consumers and improve the home-buying experience.
The other options focus on unrelated aspects. Regulations surrounding broker commissions are not the focus of RESPA, nor does the act influence property taxation or establish zoning laws. Instead, RESPA is specifically centered on settlement service disclosures and consumer protection during real estate transactions.