Florida Broker Practice Exam

Which terms must be disclosed when advertising with triggering terms?

1. The name of the financing company

2. The amount or percentage of down payment

3. The history of the property

4. The number of interested buyers

The correct answer is: The amount or percentage of down payment

When advertising with triggering terms, the amount or percentage of the down payment is a term that must be disclosed. Triggering terms are specific financial details that, when mentioned in advertising, require additional disclosures to ensure transparency and compliance with regulations, particularly under the Truth in Lending Act (TILA) and Regulation Z. These rules are designed to protect consumers by providing them with adequate information about the cost of credit. If an advertisement includes there will be a certain down payment, it is essential to disclose not only that amount but also other related credit terms such as the loan term, interest rates, and monthly payment amounts. This requirement helps consumers make informed decisions about their financial commitments and understand the conditions attached to the advertised financing options. While other terms like the name of the financing company, the history of the property, or the number of interested buyers may be relevant in different contexts, they do not trigger the same disclosure requirements focused on financial aspects outlined by TILA. Hence, the correct answer emphasizes the legal necessity to disclose the down payment details when such triggering terms are used in advertisements.