Certified Regulatory Compliance Manager (CRCM) — Question 105

The initial disclosure requires that certain disclosures relating to the termination of a lease be given to the consumer. Which of these disclosures is NOT required?

Answer options

• A. The conditions under which the lease may be terminated before the end of its term
• B. Whether or not the lessee has the option to purchase the property and at what price
• C. Whether the lease may be extended at the option of the lessee
• D. Whether the lessee will be liable for the difference between the estimated value of the property and its realized value at the termination or end of the lease

Correct answer: C

Explanation

Option C is correct because the option for lease extension is not a required disclosure under the initial disclosure regulations. Options A, B, and D are necessary disclosures as they inform the lessee of critical conditions regarding lease termination and potential financial liabilities.