32. To avoid triggering full disclosure under TILA when advertising financing availability on a listed property, which of the following statements must a real estate licensee avoid using?
Answer: D
To avoid triggering full disclosure under TILA when advertising financing availability on a listed property, a real estate licensee must avoid using the statement "buy for less than $650 per month."
Using language that specifies a particular payment amount, such as "buy for less than $650 per month," can trigger full disclosure under TILA, as it implies specific financing terms that may not be universally applicable or may require additional disclosures.
A) assumable loan
The term "assumable loan" is a general statement about the nature of the loan and does not specify particular financing terms or payment amounts. As such, it does not trigger full disclosure requirements under TILA and can be used without concern.
B) owner willing to finance
"Owner willing to finance" is also a broad statement that indicates a potential financing option without specifying payment terms. This phrase does not trigger TILA's full disclosure requirements, making it permissible for real estate licensees to use in their advertising.
C) FHA and VA financing available
Indicating that "FHA and VA financing available" refers to types of financing options rather than specific terms or payment amounts. This statement does not trigger TILA disclosure requirements and can be used as it informs potential buyers of available financing programs.
D) buy for less than $650 per month
This statement specifies a particular monthly payment, which is likely to trigger full disclosure requirements under TILA. By advertising a specific payment amount, it implies certain financing terms that necessitate additional disclosures to ensure compliance with TILA regulations.
Conclusion
"Buy for less than $650 per month" is the statement that must be avoided to prevent triggering full disclosure under TILA, as it implies specific financing terms. The other options do not specify payment amounts and therefore do not trigger these requirements. Understanding the implications of specific language in advertising is critical for real estate licensees to ensure compliance with TILA.