Question 57

To avoid triggering full disclosure under TILA, a real estate licensee must avoid using the statement "buy for less than $650 per month."

Using the statement "buy for less than $650 per month" could trigger full disclosure requirements under TILA, as it implies specific financing terms that may not be universally applicable, thus necessitating further disclosures.

A) assumable loan

The term "assumable loan" is a type of financing option that does not inherently suggest specific payment amounts or terms, and therefore, it is less likely to trigger TILA’s full disclosure requirements. A real estate licensee can mention this option without necessitating extensive additional disclosures.

B) owner willing to finance

Stating "owner willing to finance" implies a potential financing scenario but does not provide specific payment details or terms. Thus, this statement does not trigger TILA disclosures and can be used by a real estate licensee without concern.

C) FHA and VA financing available

Mentioning "FHA and VA financing available" describes specific financing programs but does not convey terms such as monthly payments. As a result, this statement can be included in advertising without triggering full disclosure requirements under TILA.

D) buy for less than $650 per month

The statement "buy for less than $650 per month" specifies a payment amount, which triggers the need for full disclosure under TILA. It implies financing terms that require additional information to be shared with potential buyers, thus making this statement problematic for real estate advertising.

Conclusion

The statement "buy for less than $650 per month" is the only option that directly implies specific financing terms, triggering TILA's full disclosure requirements. The other options—assumable loan, owner willing to finance, and FHA and VA financing available—do not imply specific payment amounts and can be used without concern for triggering additional disclosures. Therefore, option D is definitively the correct choice.