Question

An owner advertised "beautiful acreage; only $5,000 down; owner will personally finance down payment." Would this be in violation of the Truth in Lending Act?

A) Yes. Acreage is not exempt from Regulation Z.
B) Yes--since a down payment was stated.
C) No. Owners are not covered by Regulation Z.
D) No. Brokers can advertise the down payment.

Answer 1

No. Owners are not covered by Regulation Z.

Step-by-step explanation:

No. Owners are not covered by Regulation Z. Regulation Z, also known as the Truth in Lending Act, requires lenders to disclose certain information about credit transactions, including mortgages, to consumers. However, the regulation generally does not apply to individuals who are extending credit for the sale of their own property. In this case, the owner is personally financing the down payment, so they would not be subject to the requirements of Regulation Z.