Federal Mortgage Law · 24% of the SAFE exameasy
Correct answer: Prohibited regardless of any disclosure made by the seller
RESPA Section 9 explicitly prohibits sellers from requiring buyers to purchase title insurance from a particular company as a condition of the sale. This prohibition applies regardless of disclosure — even full written disclosure does not make this practice permissible. Options A and D incorrectly suggest disclosures or alternatives can cure the violation. "Permissible if the seller discloses the requirement..." is also incorrect because the prohibition is not limited to affiliated companies; any seller-mandated title company requirement violates Section 9.
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