Florida Broker Practice Exam

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What type of law is RESPA categorized under?

Property law
Consumer protection law
Contract law
Bankruptcy law

The correct answer is: Consumer protection law

RESPA, which stands for the Real Estate Settlement Procedures Act, is categorized under consumer protection law. This federal legislation was enacted to protect consumers from abusive practices in the real estate settlement process, particularly in the context of mortgage transactions and real estate closings. The act ensures that consumers receive proper disclosures about the costs associated with the settlement in order to facilitate informed decision-making. By providing transparency about fees and practices, RESPA helps to prevent fraud and abuse of consumers, which is a primary focus of consumer protection law. Therefore, the correct categorization of RESPA aligns with its purpose of safeguarding the interests of consumers in real estate transactions.