TN Timeshare

Question 1

What is the Tennessee Real Estate Commission (TREC)

Answer 1

The JUDICIAL Body of the Real Estate industry of Tennessee

Question 2

Following discriminatory practice, you should make complaint within () days

Answer 2

180

Question 3

What is a time share estate?

Answer 3

Ownership or leasehold estate in property devoted to a timeshare fee, tenants in common, time span ownership, interval ownership, and a time share lease

Question 4

What is an acquisition agent?

Answer 4

Licensed and attempts directly to encourage any person to attend a sales presentation for a time share program

Question 5

What is an exchange agent?

Answer 5

Agent for an exchange program

Question 6

What is a purchaser?

Answer 6

Anyone who buys a time share

Question 7

What is a sales agent?

Answer 7

Person acting as a seller of any time share contract (only sell under specific time share developer) anyone who sells a time share

Question 8

What is a person that sells more than 5 time shares a year that are not their own?

Answer 8

Time share resale broker

Question 9

What is a unit?

Answer 9

Real property improvements in a project which is divided into time share intervals

Question 10

What is a managing agent?

Answer 10

Person with management duties and responsibilities and obligations of a time share program

Question 11

What are time share units?

Answer 11

Time share units can be created in any unit unless

1) expressly prohibited by project instruments

Or

2) local governing laws

Question 12

What should be included on the public offering statement?

Answer 12

A.the public offering statement should contain:

*Name of country where property is located

*legal description of property

*identifications of time periods by letter, name and number

*identification of time shares estates and how many units can be time share

*common expenses and voting rights

*any restrictions on use, occupancy, alterations, or alienation of time share units

*ownership interest/maintenance provisions/replacement

Question 13

() must be provided to each purchaser of a timeshare

Answer 13

Public offering statement

Question 14

When do you have to give a public offering statement? What is the exception?

Answer 14

Must be provided to each purchaser of a time share

EXCEPTION developer was registered and PO statement was provided to purchaser under Security and Exchange Act etc., then the owner of the property is not requested to provide a public offering statement when conveying to another individual

Question 15

What is an Escrow of Deposits

Answer 15

When a purchaser gives deposit money it is placed in an account of an independent escrow co and held 100% during cancellation period

Question 16

Active licensees must have () coverage

Answer 16

Errors and Omissions

Question 17

I’m the mutual rights of cancellation the contract is voidable by the purchaser or developer until he has received a public offering statement

Answer 17

10 days onsite
15 days off site

Question 18

In the disclosure of rescission rights, you may cancel a contract. It must be in boldface and conspicuous type in every () and every ()

Answer 18

Public offering statement

Contract for sale below signature

Question 19

Cancellation of contract is without penalty if they follow the disclosure of rescission rights. It must be refunded within () days after receipt of notice.

Answer 19

30

Question 20

Misleading advertisement is unlawful

Answer 20

True

Question 21

When can the commission issue a cease and desist order?

Answer 21

If a developer has not registered a timeshare program.

Question 22

Prize or gift promotional offers are only okay under what 2 circumstances?

Answer 22

Under sponsorship and with approval of firm with whom licensee is affiliated

I’m writing signed by licensee with disclosure of all pertinent details

Question 23

What cannot be paid to any person who does not hold a real state license?

Answer 23

Cash rebates, cash gifts, and cash prizes

Question 24

If for any reason a guest has not received their gifts within a period of () they may be given the gift or the cash equivalent

Answer 24

72 hours

Question 25

What are the powers of the real estate commission

Answer 25

They can fine licensees, they can suspend your license, they can refer you to a court of law, their investigators can come by at any time during business hours to see any of your records, and they can close a development