A broker advertises a property and states that the seller will pay $5,000 toward the buyer's closing costs. The ad also includes the monthly payment amount. Under Regulation Z, the broker must now also include which of the following?
Correct Answer
D) The APR, the amount or percentage of the down payment, and the terms of repayment
Stating the amount of any payment is a triggering term in a closed-end credit advertisement, and once an ad contains one, Regulation Z requires three additional disclosures: the amount or percentage of the down payment, the terms of repayment over the full term of the loan including any balloon payment, and the annual percentage rate using that term. The other triggering terms are the amount or percentage of a down payment, the number of payments or period of repayment, and the amount of any finance charge. The seller's $5,000 credit is not itself a triggering term, but the monthly payment figure in the same ad is.
Why This Is the Correct Answer
Why the Other Options Are Wrong
Deep Analysis of This Practice Of Real Estate Question
Background Knowledge for Practice Of Real Estate
Real World Application in Practice Of Real Estate
Common Mistakes to Avoid on Practice Of Real Estate Questions
Related Topics & Key Terms
Key Terms:
Related Concepts
Market allocation is an illegal antitrust practice in which competing real estate brokerages agree to divide markets among themselves by geographic area, property type, or price range, thereby eliminating competition.
Price fixing is an illegal antitrust practice in which competing real estate brokerages agree to charge the same commission rates, fees, or other pricing for their services. It is a per se violation of the Sherman Antitrust Act.
Florida brokers are required to maintain transaction records and escrow records for a minimum of five years.
More Practice Of Real Estate Questions
A Rhode Island principal broker reviews escrow or trustee account records are maintained for a transaction. Which answer follows Rhode Island law?
Under the Alabama Fair Housing Law (Code of Alabama §24-8-1 et seq.), all of the following are protected classes EXCEPT:
Properties in the New Orleans French Quarter face additional regulations from:
Under the Illinois Real Estate License Act of 2000, which statement most accurately defines the role of a 'designated managing broker'?
Lisa is a licensed salesperson in Massachusetts and wants to obtain a New Hampshire real estate license without completing the full 40-hour pre-license education. She has been licensed in Massachusetts for four years and is in good standing. Under New Hampshire's reciprocity provisions, which statement BEST describes her options?
- → Under Georgia law, what is the general statute of limitations for initiating disciplinary action against a licensee for a violation of the Georgia Real Estate License Law?
- → A firm owner in Apex is answering a client question about licensure scope, definitions, and exemptions. Which statement best applies under current North Carolina law?
- → Maria obtained her New Jersey salesperson license in 2022. Her license is due for renewal, but she has not yet completed any continuing education. She continues to show properties and write offers for clients. Under New Jersey law, which of the following best describes her situation?
- → All of the following require active supervision by a broker EXCEPT:
- → In Kentucky, a licensee appointment or vacancy must be filled. Which statement is correct?
- → A closing-file reviewer in Huntersville is preparing an exam-prep note on Commission rules structure and regulatory authority. Which statement best applies under current North Carolina law?
- → Sarah is a licensed Virginia real estate salesperson. She was recently convicted of embezzlement in a Virginia circuit court. Under Virginia License Law, what is the VREB most likely to do upon learning of this conviction?
- → All of the following are acceptable methods for completing the 14-hour continuing education requirement for Florida real estate license renewal EXCEPT:
- → A real estate broker in Hot Springs, Arkansas is reviewing her office's fair housing training materials. She wants to update the list of protected classes covered under the Arkansas Fair Housing Act. Which of the following lists accurately reflects the protected classes under the Arkansas Fair Housing Act at the state statutory level?
- → James holds an active Washington real estate Broker license and wants to upgrade to a Managing Broker license. Under RCW Chapter 18.85, what is the minimum active experience requirement James must meet before applying for a Managing Broker license?
People Also Study
Buyer Representation Agreement
8% of exam
Property Ownership
10% of exam
Land Use Controls and Regulations
8% of exam
Valuation and Market Analysis
10% of exam
Related Articles
Agent Branding — 2026 Guide for U.S. Agents: Step-by-Step + Best Practices
Learn how Agent Branding works and how U.S. real estate agents use it in 2026. Includes setup steps, practical examples, and best-practice tips.
Agent Stats Card — 2026 Guide: What It Does, How to Use It + Best Practices (U.S.)
Learn how Agent Branding works and how U.S. real estate agents use it in 2026. Includes setup steps, practical examples, and best-practice tips.
AI VideoMaker — 2026 Guide: What It Does, How to Use It + Best Practices (U.S.)
Learn how AI Video Maker works and how U.S. real estate agents use it in 2026. Includes setup steps, practical examples, and best-practice tips.