Which of the following dwellings are not covered by the right of rescission?

Prepare for the Truth in Lending (Regulation Z) Test. Practice with flashcards, multiple-choice questions, and detailed explanations to ensure success. Get exam-ready today!

The correct answer is that a cabin for weekend and holiday getaways is not covered by the right of rescission. The right of rescission under Regulation Z is applicable primarily to transactions involving a principal dwelling. A principal dwelling is defined as a home that is occupied by the borrower as their primary residence.

In this case, a cabin intended exclusively for weekend or holiday use does not serve as a primary residence, thus disqualifying it from the protections afforded under the right of rescission. This regulation is designed to ensure consumers are provided with certain rights and protections when entering into credit transactions that involve their main homes.

On the other hand, the other options listed involve dwellings that meet the criteria of being a principal residence, such as a houseboat, a trailer, and a condo unit, which are covered by the right of rescission.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy