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What are the 2 exceptions in which a lender does not have to send the initial disclosures? In real estate law, under what circumstances is a lender exempt from sending initial disclosures?

a) Cash transactions and foreclosure
b) Short-term leases and refinancing
c) Seller financing and commercial loans
d) Rental agreements and government-backed loans

User Zamboney
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Final answer:

The correct answer to the question of the two exceptions when a lender does not have to send initial disclosures is c) Seller financing and commercial loans.

Step-by-step explanation:

In the context of real estate law, lenders are generally required to provide initial disclosures to borrowers under various regulations, including the Truth in Lending Act (TILA) and the Real Estate Settlement Procedures Act (RESPA). These disclosures are important for the borrower to understand the terms and costs associated with the loan. However, there are certain exceptions where lenders are not required to send initial disclosures.

Seller-financed transactions, where the owner of the property provides the financing directly to the buyer, often do not fall under the same regulations as traditional mortgage lenders.

Similarly, commercial loans, which are loans used for commercial rather than personal, family, or household purposes, are usually exempt from the disclosure requirements that apply to consumer loans.

User Jonathan Sterling
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