Mortgage Loan Originator (MLO) Licensing Practice Test 2026 – Your All-in-One Guide to Exam Success!

Section 9 of the Real Estate Settlement Procedures Act (RESPA) specifically prohibits sellers from requiring buyers to use a particular title insurance company as a condition of the sale. This regulation is in place to ensure that buyers have the freedom to select their title insurance provider and are not coerced into using a specific company, which might not offer the best rates or services. This prohibition is designed to promote competition in the title insurance industry and protect consumers from potentially excessive or unfair charges related to title services.

The underlying intent of this provision is to enhance transparency and allow buyers to make informed decisions about the services they utilize during the real estate transaction process. By preventing sellers from controlling the choice of title company, Section 9 fosters an environment that can lead to better pricing and service options for consumers.