Real Estate Massachusetts Real Estate Massachusetts-Real-Estate-Salesperson Question # 32 Topic 4 Discussion

The Truth in Lending Act (TILA, Regulation Z) regulates advertising of credit terms. If an advertisement contains a triggering term such as the amount of down payment, monthly payment, interest rate, or repayment period, then full disclosure of all financing terms must be provided.

“Buy for less than $650 per month” (D) is a triggering term because it states a specific monthly payment. This requires full disclosure of the APR, down payment, term, and total cost of financing.

“Assumable loan” (A), “owner willing to finance” (B), and “FHA and VA financing available” (C) are general financing terms that do not trigger mandatory disclosure.

Thus, the correct answer is D.