What does RESPA Section 9 allow?

RESPA Section 9 specifically addresses the rights of homebuyers concerning title insurance and the selection of the title insurance company. According to this section, if a seller requires a buyer to use a particular title insurance company, the buyer has the ability to sue for an amount equal to three times the charge for the title insurance.

This provision is intended to promote fairness and protect consumers from being coerced into using a particular service that may not be in their best financial interest. By allowing the buyer to take legal action if the seller imposes such a requirement, RESPA Section 9 encourages a competitive market for title insurance, which can ultimately benefit the buyer through lower fees and more choices.

The other options do not accurately reflect the provisions outlined in RESPA Section 9. For instance, while it may seem reasonable for sellers to have influence on who provides title insurance, the section is geared towards protecting the interests of buyers, not giving sellers the authority to mandate specific companies.