Certified Regulatory Compliance Manager (CRCM) — Question 108

Which of the following statements is true regarding the lessee's ability to purchase the leased property?

Answer options

• A. The lessor must allow the lessee to purchase the leased property either during the lease term or at the end of the term.
• B. If the lessor allows the lessee to purchase the property at the end of the lease term, the lessor may not charge more than the equivalent of 12 monthly payments for the property.
• C. If the lessor allows the lessee to purchase the property at the end of the lease term, the purchase price must be disclosed in the initial disclosure statement.
• D. The purchase price of the leased property must be mutually agreed on by the lessor and the lessee.

Correct answer: C

Explanation

The correct answer is C because it is required that the purchase price be disclosed in the initial disclosure statement if the lessor allows the lessee to buy the property at the end of the lease. Options A and B misstate the requirements regarding the lessee's purchase rights, while option D is incorrect as it does not specify the need for disclosure in the initial statement.