Under what condition will RESPA cover raw land transactions?

RESPA, or the Real Estate Settlement Procedures Act, primarily regulates the settlement process of residential real estate transactions to promote transparency and protect consumers. When it comes to raw land transactions, RESPA applies under specific conditions.

The condition that the land must be intended for residential construction within a two-year period is crucial. This reflects the intent that the buyer will eventually partake in a residential development, which aligns with RESPA’s purpose of overseeing residential transactions. If there is a clear intent to build on the raw land within that time frame, it establishes the buyer’s purpose as being residential, thus bringing the transaction under RESPA's jurisdiction.

Other conditions, such as whether the land is being sold for investment or the purchase of multiple lots, do not inherently indicate that the land will be used for residential purposes. Similarly, the qualification for a low-interest loan does not dictate whether RESPA applies; the focus is primarily on the intended use of the land regarding residential purposes. Thus, the intent to build a dwelling within a specific timeframe is the key factor that allows RESPA to cover raw land transactions.