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RESPA - The Real Estate Procedures Settlement Act. If you are linking to buy or sell real estate as a consumer, and not a business, this law most likely applies to you. The good news is that the law was designed to protect consumers, and allow them to shop around and make more informed decisions. If you are buying a single family home, or even a Four Plex, you are covered. One interesting fact about RESPA is that in the last two years, there have been more violations that resulted in federal action. Then there were in the prior 30 years. Many real estate related professions are covered under RESPA. These include lenders, inspectors, and other home related services. The idea behind RESPA essentially is to keep your real estate agent on your side, and not in the back pocket of his cronies. Real estate agents cannot get compensation for referring your business to professionals, without disclosing this to you. Does it happen? Absolutely. But the fact of the matter is, it is still illegal. As a consumer, you should be 100% sure that your real estate agent is working only for you. Specific benefits to consumers...RESPA mandates that you, as the borrower, have the right to inspect the actual closing costs the day before closing. This is important because the day of closing can be an emotional roller coaster, not to mention a frantic time. Being able to inspect all of your actual costs ahead of time can put you at a great advantage. Remember, knowledge is power. Your agent's responsibility...When you as the buyer are about to close at real estate transaction, you will want to be sure your agent tracks down the list of closing costs. What we do for our customers here in Greenville South Carolina is whatever it takes to track down the closing costs. This is not always easy. Sometimes we have to call the attorney. They may not have it, so we will call the lender. No matter who you use for your real estate agent, keep these two things in mind:
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