Tennessee Timeshare Practice Exam Questions with Verified Solutions

Tennessee Timeshare Practice Exam Questions with Verified Solutions Timeshare units can be created: in any unit unless prohibited by local laws Receipt of Public Offering Statement shall take place no later than: Date of sale To be valid, a Public Offering Statement must be: signed and dated Disclosure of Recession of Rights must appear in bold face print in the: contract and public offering statement Escrow account for timeshare sale shall not be held by: the developer Who is ultimately responsible for Escrow funds? the broker Any person other than a developer or lender who acquires an interest in a Timeshare is called: purchaser A person visits a Timeshare resort in Tennessee and signs a contract of sale. The maximum recession period for this person is: 10 days A timeshare contract is voidable by purchaser until: a 10 day recession period has passed and until they have received a public offering statement A person who solicits people to attend a timeshare presentation is: an acquisition agent A person who exchanges timeshare intervals in exchange programs with other timeshare intervals is called a/an: exchange agent Price increase in timeshare can NOT be announced more than how many days prior to the effective date? 60 days If an unlicensed person is fined by TREC, not the court, the maximum fine is ______ per offense. $1,000 The purpose of the "Tennessee Real Estate Brokers License Act of 1973" is: to protect the public A timeshare resort may offer a promotional gift as an inducement to tour if all the following conditions are met EXCEPT: it must be approved by the Tennessee Real Estate Commission The TN Real Estate Commission has the authority to perform the following duties EXCEPT: sentence a guilty licensee to a jail term There are ____ members of the TN Real Estate Commission 9 The TN Real Estate Commission is declared to be: a judicial body Errors and Omission Insurance is required: as a condition of licensing Who appoints individuals to the TN Real Estate Commission: the governor The term "person" means: an individual, corporations, and partnerships A person who violates the law by selling timeshares without a license is guilty of: class B misdemeanor In order for a license to be revoked or suspended by the TN Real Estate Commission it takes a vote of: a majority of the commission The Education of Recovery Fund: applies to all licensee and firms All licenses expire: two years from the date of being licensed The most any license can have paid out of the Education and Recovery fund is: $30,000 Who is responsible to see that a licensee's fees and education are up to date? licensee The TN Timeshare Act was established in: 1981 What type of license would a salesperson need to sell timeshare? either an affiliate brokers license, brokers license, or a timeshare license Which of the following people would not be required to hold a real estate license? an unlicensed owner attempting to sell his own timeshare unit, an attorney in fact under a signed and recorded power of attorney, or an employee collecting rent for a broker managing a residential rental property To place a license in retirement status, a licensee must do all of the following EXCEPT: reactivate their license every 3 years Should a timeshare licensee wish to change resorts, the current broker: must sign the release form immediately Disclosures required by the 1968 "Truth in Lending Act" include: late charges and amount financed The purpose of the 1968 "Truth in Lending Act" is: disclose the cost of credit The term "timesharing" came from what industry: computer The timeshare agent refuses to sell the timeshare to an African American. This refusal is prohibited by: 1968 Fair Housing Act as amended All of the following are essentials of a contract EXCEPT: performance The "Federal Truth in Lending Law" is: -also called Regulation Z -Part of the Consumer Protection Act -Requires lenders to disclose all costs relating to the credit portion of purchase A person who sells or offers to sell timeshare intervals in a timeshare program to a purchaser is called a/an sales agent A timeshare unit may be owned: -in trust -in co-ownership -in severalty Any broker, affiliate broker, or timeshare licensee who make any substantial and willful misrepresentation may have their license: -revoked -suspended -downgraded The TN Real Estate Commission policy for fees and commissions is: Commission does not set fees and commission Misleading or deceptive representation would be telling the purchaser that: they will never have to pay a maintenance fee The sales contract shall be retained by the developer for how many years? 4 years Unaware her license to sell timeshare had expired, Jane Smith sold a week of timeshare. To whom would the commission be payable? no one No broker shall hire a timeshare salesperson that lives more than ____ miles from the sales office 50 The definition of a "Premiere Tourist Resort City" in the TN Timeshare Act is a municipality of more than 3,000 people and that _____% of the value of real estate consists of hotels, motels, tourist court accommodations, tourist shops, or restaurants 40 If a person feels that they have been the victim of discrimination, they must report the incident with how many days according to the Fair Housing laws? 180 What is a TREC 1 form for? -change where you are working -place your license in retirement -change your address What is not required to get a timeshare license? must be 21 years old What is a person that sells more than 5 timeshares a year that are not their own? Timeshare resale broker What should be included in the public offering statement? -name of the 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 in a timeshare -common expenses and voting rights -any restrictions on use occupancy alternations or alienation of timeshare units -ownership interest/maintenance provisions/replacement Cancellation of contract is without penalty if they follow the disclosure of rescission rights. It must be refunded within ____ days after the receipt of notice 30 The real estate commission forms the riles in accordance with the: TN Code Annotated ________ is a consumer credit protection law which is part of truth in lending regulation? part 7 enacted in 1969 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 How long do you have to spend as an affiliate before applying to be a broker? 3 years 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 acts says that the real estate commission has to give you any charges in writing if you license is threatened? Uniform Administrative Procedures Act What is an escrow account? deposit for purchase into a bank account What is the purpose of TREC? to protect the public When is a public offering statement not required? During resale What must be stated in a truth of lending? disclosure of everything related to a loan Who makes up the TN Real Estate Commission? 9 members: -3 from each grand division of the state -7 real estate agents -2 from general public