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Federal laws protect consumers during real estate transactions. These regulations require disclosures, prohibit discriminatory practices, and ensure transparency in lending and settlement services. Understanding these protections helps identify violations and know when rights are being compromised.

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Key Consumer Protection Laws

RESPA

Real Estate Settlement Procedures Act governs closing costs, disclosures, and prohibits kickbacks

TILA

Truth in Lending Act requires clear disclosure of loan terms, rates, and costs

Fair Housing

Prohibits discrimination in housing based on protected characteristics

Required Disclosures

Property condition, environmental hazards, and other mandatory seller disclosures

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Why This Matters

For buyers and borrowers:
  • Right to choose service providers (title, insurance, etc.)
  • Right to receive accurate loan cost disclosures
  • Right to shop for settlement services
  • Protection from discriminatory practices
  • Right to understand what you’re signing
For sellers:
  • Disclosure requirements that limit future liability
  • Protection from discriminatory buyer selection
  • Clear rules about what must be revealed
For renters:
  • Protection from discriminatory landlord practices
  • Fair application processes
  • Equal access to housing

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Filing Complaints

When consumer protection violations occur, several agencies handle complaints: Consumer Financial Protection Bureau (CFPB) Handles RESPA and TILA violations related to mortgage lending and settlement services. Department of Housing and Urban Development (HUD) Handles Fair Housing violations and discrimination complaints. State Attorney General Many states have additional consumer protection laws. State AG offices handle violations of state-specific regulations. State Real Estate Commission Handles complaints against licensed real estate professionals.

Next: RESPA

Understanding the Real Estate Settlement Procedures Act