What type of transactions does RESPA not apply to?

RESPA, or the Real Estate Settlement Procedures Act, primarily governs the procedures involved in transactions related to federally related mortgage loans. It aims to offer protection and transparency to consumers during the home buying process, especially concerning fees and disclosures.

The correct answer pertains to the types of transactions that RESPA explicitly does not regulate. Vacant land transactions are one of these categories because RESPA is designed to apply specifically to residential real estate transactions that involve a loan secured by residential properties. Since vacant land does not fall under the definition of "residential property," transactions involving such land do not trigger the requirements of RESPA.

Residential property sales, transactions involving federally related loans, and loans secured by traditional mortgages all involve some form of dwelling that would necessitate compliance with RESPA regulations. By contrast, since vacant land lacks the classification as residential property, it is outside the scope of RESPA's intended protections and disclosures. This distinction is crucial for understanding the limitations of RESPA's applicability in various real estate transactions.