California Real Estate Practice Exam

The advertising regulations of the Truth-in-Lending Law primarily focus on commercial advertising by lenders and those in the real estate profession, ensuring that they provide clear and accurate information regarding credit terms, including the annual percentage rate (APR) and other conditions that affect borrowing costs.

In the case of a homeowner advertising their own home for sale, particularly if it's subject to an existing loan, they are generally seen as private individuals rather than regulated professionals or lending institutions. The regulations are designed to apply to entities that regularly engage in the business of advertising financing or lending products rather than to individual homeowners who are not in the business of lending. Thus, when a homeowner advertises their property, it does not engage with the same level of scrutiny or regulatory framework that applies to brokers and financial institutions.

This distinction clarifies that option D is not subject to the same Truth-in-Lending advertising regulations since it involves a private sale rather than a commercial or professional advertising scenario.