RESPA Section 9 prohibits sellers from requiring buyers to use a specific title insurance company as a condition of sale. What recourse do home buyers have if this is not followed?

The correct recourse for home buyers under RESPA Section 9, if sellers improperly require the use of a specific title insurance company, is the ability to sue for three times the title insurance charges. This provision is designed to protect consumers by providing them with a significant financial incentive to enforce their rights under the law. The ability to sue for treble damages serves as both a deterrent against such unlawful practices by sellers and a means for buyers to seek compensation for any harm they might suffer due to the violation. It underscores the importance of consumer rights in real estate transactions, ensuring that buyers are not coerced into using a particular title insurance provider against their will.

In contrast, options like a fine or a federal investigation do not directly compensate the buyer or address the issue of coercion, and canceling the sale without penalty does not provide a remedy for the buyer who may already have incurred costs related to the transaction and title insurance. Thus, the ability to sue for three times the title insurance charges is a more effective and meaningful recourse.