Nevada Real Estate Practice Exam 2025 – 400 Free Practice Questions to Pass the Exam

When a seller requires title insurance from a specific provider, this could potentially violate the Real Estate Settlement Procedures Act (RESPA). RESPA aims to enhance transparency in the real estate transaction process and to protect consumers from abusive practices related to settlement services.

One of the key provisions of RESPA is the prohibition against kickbacks and referral fees in real estate transactions. By mandating a specific title insurance provider, the seller may be implying that the service is part of a closed-loop system that could lead to inflated costs or conflicts of interest. This requirement could limit the buyer's ability to choose their preferred title provider freely and may lead to a violation of RESPA's regulations concerning the selection of settlement service providers.

The other options, while significant in their respective areas—such as the code of ethics which governs professional conduct, the Fair Housing Act which prohibits discrimination based on certain protected classes, and the Equal Credit Opportunity Act which ensures non-discrimination in lending—do not directly relate to the requirement for using a specific title insurance provider in the transaction process. Hence, the connection to RESPA makes this selection the most appropriate answer.