Tennessee Realtor State Practice Exam

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Prepare for the Tennessee Realtor State Exam with questions and explanations designed to help you succeed. Master the principles and regulations of real estate in Tennessee. Ace your exam with confidence!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

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What does RESPA stand for?

Real Estate Settlement Procedures Act
Residential Emergency Services Program for the Elderly
Real Estate Services and Policies Act
Residential Equity Strategy Payment Agreement

The correct answer is: Real Estate Settlement Procedures Act

RESPA stands for the Real Estate Settlement Procedures Act. This federal law was enacted to help protect consumers in the process of buying a home or refinancing a mortgage. It requires that homebuyers receive specific disclosures that outline the closing process, including the costs associated with it. The intent of RESPA is to ensure transparency in real estate transactions and to reduce the potential for unethical practices related to the settlement process. The other options do not accurately represent the full title or purpose associated with RESPA. While some may pertain to housing or financial assistance, none reflect the regulatory and consumer protection role that RESPA plays in the real estate settlement process. Understanding RESPA is crucial for real estate professionals as it impacts how transactions are conducted and the information disclosed to buyers and sellers.