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Exam CRCM topic 1 question 108 discussion

Actual exam question from ABA's CRCM
Question #: 108
Topic #: 1
[All CRCM Questions]

The initial disclosure requires that certain disclosures relating to the termination of a lease be given to the consumer. Which of these disclosures is NOT required?

  • A. The conditions under which the lease may be terminated before the end of its term
  • B. Whether or not the lessee has the option to purchase the property and at what price
  • C. Whether the lease may be extended at the option of the lessee
  • D. Whether the lessee will be liable for the difference between the estimated value of the property and its realized value at the termination or end of the lease
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Suggested Answer: C 🗳️

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Cam22
4 months ago
Selected Answer: B
Option B, concerning whether the lessee has the option to purchase the property and at what price, does not directly relate to the termination of the lease in the same way as the other options. This option involves a potential sale at the end of the lease term or at some point during the lease, which is distinct from termination conditions, extension options, or liabilities related to the lease's end. While this information is important and must be disclosed if applicable, it is not considered part of the essential disclosures specifically related to lease termination.
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