Tennessee Real Estate Exam Practice Question
According to the Truth-in-Lending Act (Regulation Z) which of the following must be stated in the Truth-in-Lending disclosure?
Correct Answer: D
Rationale: The annual percentage rate (APR) must be included in the Truth-in-Lending disclosure as it provides borrowers with a clear understanding of the total cost of credit, expressed as a yearly interest rate. This transparency helps consumers compare different loan offers effectively.
In contrast, attorney fees (A), cost of title policy (B), and broker's commission (C) are not mandated disclosures under Regulation Z. While these costs may be relevant to the overall transaction, they do not directly reflect the cost of borrowing and are therefore not required in the Truth-in-Lending disclosure.
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