Which action is a requirement under the Real Estate Settlement Procedures Act?

The Real Estate Settlement Procedures Act (RESPA) aims to protect consumers in the process of obtaining settlement services by promoting transparency and preventing abusive practices. Among its various stipulations, one key requirement is centered around the selection of title insurance companies. Under RESPA, it is important for the buyer to have the ability to choose their own title insurance provider, which prevents sellers from mandating a specific company that the buyer must use.

By allowing buyers the freedom to select their title insurance, RESPA fosters a competitive marketplace and helps ensure that consumers are not pressured into potentially unfavorable arrangements. This provision is crucial in preventing conflicts of interest that could arise if sellers were allowed to dictate the title insurance provider, thereby ensuring that buyers engage with a service provider that meets their specific needs and provides a fair rate.

The other options either misrepresent RESPA’s requirements or address unrelated aspects of real estate transactions. Thus, the selection related to the seller's prohibition from choosing a title insurance company resonates accurately with the objectives and stipulations outlined in the Real Estate Settlement Procedures Act.