According to RESPA, a seller cannot require a buyer to purchase which of the following?

The correct answer highlights an important aspect of the Real Estate Settlement Procedures Act (RESPA), which aims to promote transparency and protect consumers during the home-buying process. Under RESPA, sellers and lenders are prohibited from mandating that buyers obtain title insurance from a specific provider. This provision is in place to prevent anti-competitive practices and ensure that consumers have the freedom to choose their title insurance provider based on their preferences, budget, and services offered.

Title insurance is a significant cost associated with real estate transactions, and by allowing buyers the freedom to select their title insurance company, RESPA promotes competition and helps to keep insurance rates fair and accessible. This is critical because title insurance plays a vital role in protecting buyers from potential issues related to property ownership, such as liens, unresolved claims, or fraud.

In contrast, the other choices may not carry the same restrictions. For instance, while buyers typically have freedom in selecting escrow agents and auxiliary services, it is more common for sellers to have input or preferences in those areas. An appraisal, on the other hand, is usually a required part of the purchasing process to determine the property's fair market value, but it does not typically fall under the same restrictions as title insurance providers.