Which transaction is exempt from RESPA regulations?

The correct answer is the transfer of property involving an existing loan assumption. This transaction is exempt from the Real Estate Settlement Procedures Act (RESPA) because RESPA primarily regulates transactions involving new loans or the transfer of loans that require a loan closing involving lender negotiations.

In the case of an existing loan assumption, the original borrower retains the loan terms, and the new buyer simply takes over the payments without a new loan application or closing process. Since RESPA focuses on protecting consumers during transactions that involve new financing or significant changes in loan terms, transactions simply involving the assumption of an existing loan do not trigger the requirements outlined in RESPA.

This understanding of RESPA exemptions is crucial for professionals in real estate to navigate the regulations effectively, ensuring compliance and clarity for their clients.