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Question 108

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?

    Correct Answer: B

    The conditions under which a lease may be terminated, the potential extension of a lease, and any liability for the difference in value at the end of the lease directly pertain to the termination and continuation of the lease. Whether the lessee has the option to purchase the property and at what price does not inherently relate to the termination of the lease itself, making it a non-essential disclosure in the context of lease termination.

Discussion
Cam22Option: 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.