Difficulty: Hard

Average Score: 44%

Which of these advertisements would trigger a full disclosure, according to TILA rules?

Rationale

New build condo for sale: could be yours for just $1,800 a month.

This advertisement triggers a full disclosure according to TILA rules because it indicates a monthly payment amount, which necessitates clear disclosure of the loan terms, including interest rates, total costs, and other fees, to ensure that consumers are fully informed about their financial obligations.

A (Asking just $250,000 for this three-bed, two-bath beauty.) YOUR ANSWER

This advertisement solely presents the price of the property without providing any details about financing or payment terms. TILA rules are primarily concerned with advertisements that reference credit terms, such as monthly payments, which this choice does not include.

B (New luxury condos available, starting at $180,000.) YOUR ANSWER

Similar to choice A, this advertisement only lists the starting price of the condos and does not mention any financing options or monthly payments. Thus, it does not trigger the full disclosure requirements set by TILA, as it lacks any specific terms related to credit.

D (Stop renting and start saving: See how low rates can put you in your own home for less than a rental.) YOUR ANSWER

While this advertisement implies a potential financial benefit, it does not specify any actual loan terms or monthly payment amounts. TILA requires clear disclosures when credit terms are presented, which is not accomplished here due to the absence of specific figures.

Conclusion

Under TILA regulations, advertisements that include specific credit terms, such as monthly payment amounts, must adhere to full disclosure requirements to protect consumers. The only choice that meets this criterion is choice C, which explicitly states a monthly payment, thus necessitating detailed disclosures regarding the financing terms. Other options merely present property prices or vague statements without triggering these legal obligations.

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