Is it permissible for a person in property financing to require the purchaser to obtain insurance through a specific agent or broker?

In property financing, it is not permissible for a lender or financing party to require a purchaser to obtain insurance through a specific agent or broker. This practice can create a conflict of interest and may not align with regulations designed to protect consumers. Borrowers should have the right to choose their own insurance provider and agent, ensuring that they can shop around for the best coverage and rates available to them. This promotes fair competition in the market and allows purchasers to select brokers that best meet their needs.

In many jurisdictions, there are legal frameworks in place, such as the Real Estate Settlement Procedures Act (RESPA) in the United States, which prohibit lenders from mandating the use of specific insurance providers as a condition of obtaining a loan. This regulation is meant to ensure that consumers are not unduly influenced or pressured into using particular service providers, which could lead to higher costs or inferior services.

The other options suggest varying degrees of allowance for requiring specific brokers or agents, but none hold true under standard regulations regarding property financing and insurance purchases.