TN Timeshare Exam Practice Test Questions with Verified Solutions

TN Timeshare Exam Practice Test Questions with Verified Solutions What is the Tennessee Real Estate Commission? Judicial body of real estate industry in TN Following discriminatory practice, you should make a complaint with ____ days. 180 What is a timeshare estate? Ownership or leasehold estate in property devoted to a timeshare fee, tenants in common, time span ownership, interval ownership, and a time share lease. What is an acquisitions agent? Licensed and attempts directly to encourage any person to attend a sales presentation for a timeshare program What is a purchaser? Anyone who buys timeshare What is an exchange agent? An agent for an exchange program What is a sales agent? Person acting as a seller of any Time Share contract (only sell under specific time share developer) Anyone who sells timeshare. What is a person that sells more than 5 timeshares a year that are not their own? Timeshare resale broker What is a unit?` Real property improvements in a project which is divided into timeshare program. What is a managing agent? Person with management duties and responsibilities and obligations of a timeshare program What are timeshare units? (what can be a timeshare) Anything can be a timeshare unit unless expressly prohibited by project instruments or local governing laws What should be included in the Public Offering Statement? name of county where property is located legal description of property ID of time periods by letter, name and number ID of timeshare estates and how many units can be a timeshare Common expenses and voting rights any restrictions on use occupancy alterations or alienation of timeshare units ownership interest/maintenance provisions/ replacement ____ must be provided to each purchaser of a timeshare. Public Offering statement When must you give a public offering statement? What is the exception? Must be provided to each purchaser of a timeshare . EXCEPTION: developer was registered and POS was provided to a purchaser under Security and Exchange act etc. What is an escrow of deposits? When purchaser gives deposit money it is placed in an account of an independent escrow company and held 100% during cancellation period. (must be insured) All licensees must have ___________ coverage. Errors and Omissions In _________, the contract is voidable by the purchaser or the developer until he has received ___________. Mutual rights of cancellation, Public offering statements In how many days must you cancel if you had an onsite inspection? How many if you didnt? 10 days, 15 days In the Disclosure of Rescission Rights you may cancel a contract. It must be in boldface and conspicuous type in every _____ and every _____. Public offering statement, contract for sale below signature Cancellation of contract is without penalty if they follow the disclosure of rescission rights. It must be refunded within ___ days after receipt of notice. 30 True or False? Misleading advertising is unlawful? True When can the commission issue a cease and desist order? If a developer has not registered a timeshare program? Prize or gift promotional offers are only okay under what two circumstances? Under sponsorship and with approval of firm with whom licensee is affiliated. And in writing signed by licensee with disclosure of all pertinent details. What cannot be paid to any person who does not have a real estate license? Case rebates, cash gits and cash prizes. If for any reason a guest has not received their gifts within ____, they may be given the gift or cash equivalent. 72 hours What are the powers of the real estate commission? They can fine licensees, suspend the license, refer you to a court of law, their investigator can come by any time during business hours to see any of your records and they can close a development. The real estate commission forms the rules in accordance with the ____. Tennessee Code Annotated What are the prerequisites for licensing? Honest, 18 years of age, resident of state, not criminal, not on probation. True or false? An applicant who has passed the exam within the last 6 months is not necessarily qualified for a license. True What is the renewal fee for the license? 80 The original license fee is ____ Plus ___ for education and recovery fee? 100, 30 You must renew you license ____ days prior to expiration 60 You must make a minimum passing score of _____% on your exam. 70 If you terminate your affiliation you have ___ days to notify the commission. 10 If your broker tells you to sell only to a particular group and you do as you were instructed, you are guilty of _____. Discrimination What are the requirements for a contract and agreement to be made? Offer an acceptance, valid consideration, competent parties, legal purposes, reality of consent Disclosure of everything related to a loan is considered? Truth in lending, came into being after banking industry was deregulated _____ is a consumer credit protection law which is part of truth in lending regulation-7 enacted 1969 When does your license expire? 2 years less 1 day from the date of issue How do you get reinstated if you let you license expire? The penalty is 50 per month for 2 months, 100 per month up to six months after that you must retake the test. Who is the developer? Can they be refused a license or registration? The seller. Yes if they are immoral, financially unstable What is an example of an exchange agent? RCI agent What can be a timeshare? Anything unless prohibited by other document or local regulations What is a project instrument? All documents associated with a timeshare If property is not a timeshare then what is it? Rental or whole ownership When do we present the public offering statement First thing in deeding, must have rescission statement on it. What is the form by which nearly all business with the commission is conducted after licensing? TREC 1 form When one of the contract essentials is missing the contract is _____. voidable How long do you have to spend as an affiliate before applying to be a broker?` 3 years How long after passing the test do you have to apply for a license 6 months then retest Whose job is it to make sure that you renew your license? the licensee What is an example of a voidable project? lacks enforceability Who is responsible for misleading advertising? Licensee placing advertising What is the most important broker responsibility? informing the rep about escrow If the develop's former partner is going bankrupt is that developers license in jeopardy? no Before a timeshare is a timeshare what is it? Project Can you indicate that a prospective guest has won a prize? no unless they have actually won Can you misstate the value of gifts promised? No How far ahead can you indicate a price increase? 60 days Do you have to be a citizen to be licensed with TREC? No What is the purpose of the TN real estate broker license act of 1973? Protect the public What are adverse facts? Conditions or occurrences that have negative impact on the value of real estate, significantly reduce the structural integrity or significant health risks What is corporeal? right to possess visible tangible real property or person property what is incorporeal? non possessory rights, intangible rights in real property (right of way, easements, licenses) What act says that the real estate commission has to give you any charges in writing if your license is threatened? Uniform administrative procedures act What is the charge for any person acting as a a broker, affiliate broker, time share salesperson, or acquisitions agent without first obtaining a license? Class B misdemeanor Number of Real estate commission member? 9 What is the term of members in TREC? 5 years Who appoints the members of TREC? Governor What are the three grand divisions and how many members of TREC are from each division? East, west, middle. 3 Who approves real estate schools? State of TN What is the liability of real estate education and recovery account? Shall not exceed 15000 for transaction or 30,000 for the duration of any licensee career What must be prominently displayed in the brokers principle place of business? All licenses What is a premier resort city? population of 3000 or more and 40% or more assessed value is hotels restaurants tourist fit shop etc How long is a term for the Executive Director of the TN Real Estate Commission? 4 years How long is the statue of limitations for record keeping for TREC transaction? 4 years What is the penalty for involuntary discrimination? 1st 10,000 2nd 25000 3rd 50000 What is the fee to move your license or put it in retirement? 25 What is the fee to change your address? Nothing 0 What are the essentials of a contract? offer and acceptance, legal purposes, consideration, reality of consent, competent parties who can pay a licensee commission? broker How are commissions determined? negotiated never fixed When are real estate commissions collected? at time of closing paid to timeshare agents after rescission What is excluded from truth in lending property value or sales commission How long does a timeshare resort have to amend an incokplete or inadequate public offering statement? 45 days How long is the rescission period on camping contracts? 15 days How many members are on the TN human rights commission? 15 How are the members of the TN human rights commission divided? 5 from each grand division What is the term of a TN human rights commission member? 6 years What is the penalty for cancellation? there is no penalty How much of a deposit must be in independent escrow? 100% Who is ultimately responsible for funds even after paid over to escrow company Broker What is the result if the developer cancels a contract during applicable rescission period? purchaser must return all materials in good condition if materials not returned developer may deduct costs What are the requirements to sell timeshare License and must be affiliated with firm which is affiliated with a registered timeshare project When did regulation-z come into effect 1969 Why was the truth in lending passed? to disclose all facts in a lending transaction Is errors and omissions insurance required for inactive or retired license? no How many members of TREC are the general public 2 The truth in lending is part of what legislation? consumer protection act In civil liability the commission would be defeated by the attorney general What is the penalty for any person acting as a broker affiliate broker timeshare salesperson or acquisition agent without first obtaining license? class B misdemeanor Whose responsibility is it to select the chair anc vice chair of TREC TREC Who has custody and charge of the Seal The commission executive director