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How long is a TSA license valid for? ✔✔ 2 years If a timeshare AGENT initially becomes licensed on June 6, 2000, when will the license expire? ✔✔June 30, 2002 (end of the month - 2 years later) If a timeshare REPRESENTATIVE initially becomes licensed on June 6, 2009, when will the license expire? ✔✔June 30, 2010 (end of the month - 1 year later) An applicant for an original timeshare license MUST provide: ✔✔An application, certificates for passing the examination and completing the 14 hour course, and $ If a timeshare agent is served notice that the division has filed charges against him/her, he/she has how many days in which to file with the Division and answer to the charges? ✔✔ 20 days A developer may NOT make a material change in the timeshare plan without giving the Division at LEAST how many days notice? ✔✔10 days If the highest monthly total of deposits received by a project is $50,000 what is the amount of surety bond REQUIRED for the benefit of the purchasers? ✔✔$50, What is a timeshare? ✔✔A guaranteed reservation at the resort of your choice
What is a fractional ownership? ✔✔Ownership of an interval of 1 month to 1/2 year The value of an individual timeshare usually ✔✔decreases in value An agreement between two or more parties is called ✔✔a contract The following elements are necessary to create an agency relationship EXCEPT: ✔✔consideration The following elements are necessary to create an agency relationship: ✔✔perception of representation, understanding, and reliance Which of the following is NOT necessary to form a contract? ✔✔performance Which of the following is necessary to form a contract? ✔✔meeting of the minds, consideration, and competence The essential parts of a written contract include ✔✔competent parties, mutual consent, consideration, and legal obligation Which statements MUST be printed above the purchaser's signature one in each contract for sale of a timeshare? ✔✔The purchaser of a timeshare may cancel, by written notice, the contract of sale until midnight of the fifth calendar day.
CORRECT: Mandates a judge or constable be present for the record The sale of a timeshare interests in the State of Nevada is regulated under the provisions of ✔✔Nevada revised statutes 1 19A MOST timeshare units are sold on credit. These lending arrangements MUST comply with Regulation Z of the Federal Reserve Board. The PRIMARY purpose of Regulation Z, as applied to timeshare sales, is to assure: ✔✔Full disclosure of all financing costs and charges Full disclosure ✔✔AKA truth and lending Federal Reserve Board's Regulation Z is applicable to ✔✔Fees only, right to use only, campsite membership Financing of individual unit sales is MOST often provided by ✔✔the developer Anyone purchasing timeshare MUST ✔✔sign a written contract After a purchaser has signed the timeshare purchase agreement, the purchaser may ✔✔cancel the agreement at any time in the next 5 days You have just completed making a timeshare sale. Your buyers go back to their hotel, and after dinner and a few cocktails, they have second thoughts about the purchase. Can they change their minds and get out of the deal? ✔✔Yes, they have the right to revoke for any reason for 5 calendar days
If the timeshare project is affiliated with a timeshare purchase agreement, the purchaser may ✔✔pay any or all fees charged by the exchange plan for the first 2 years On what is the timeshare project developer responsible with regards to maintenance charges? ✔✔All unsold timeshare units Nevada law REQUIRES all timeshare sales agents to: ✔✔take 14 hours of continuing education every 2 years (correct: 6 hours of continuing education) All of the following statements are TRUE about an owners' association EXCEPT ✔✔is formed primarily for the purpose of selling timeshare interests in the resort It is discovered that the title of a project is "un-merchantable" because an easement has been found which may NOT be removed. What should a timeshare sales agent do? ✔✔Not attempt to sell a unit where the title is un merchantable Ted and Alice Lastly have arrived at their timeshare resort and produce the confirmed reservation for a unit. They are informed that the unit is NOT available. Ted goes through the roof, but Alice has read up on a Timeshare Owner's Rights in NEvada. She listens politely to the apologies of the desk clerk, then demands to see the representative of the owner's association, or if there is no representative, then the developer. Alice knows that they are entitled to all of the following EXCEPT: ✔✔a full refund of their purchase price
The Nevada regulations governing Public Offering statement in timeshare sales are very specific. One such rule covers a project's Public Offering Statement warning message. Which statement is TRUE? ✔✔The warning message must be printed in RED. In an agency relationship: ✔✔an agent must disclose material facts to prospective purchaser. The Duties Owed by a Nevada Real Estate Licensee: ✔✔must be given to each prospective purchaser before any contract is signed. A timeshare sales agent is at a point in the sales presentation where the prospective purchaser is reaching for their checkbook. The sales agent has done a great job and the deal is going to be linked. Before the sales agent can take the money, what must be done? ✔✔A copy of the Public Offering statement should be given to the purchaser. Which agency in Nevada issues the Public Offering Statement? (POS) ✔✔Real Estate Division Which document MUST be received and signed by the purchaser before the execution of any contract for the sale of a timeshare? ✔✔Public Offering Statement (POS) Which document MUST be received and signed by the purchaser before the execution of any contract for the sale of a timeshare? ✔✔Public Offering Statement (POS) Under NRS 119A, the notice of cancellation may be delivered to the developer in all of the following methods EXCEPT by ✔✔electronic mail to the address shown on the project information (all cancellations in WRITING and delivered - mail, fax, UPS etc)
What is normally included in the annual maintenance fee charged in a timeshare program? ✔✔1. Taxes and insurance
- Replacement of furniture
- Maintenance of rooms
- All of the above ALL OF THE ABOVE Which of the following is NOT required for contract documents? ✔✔1. Written in easily understandable terms
- Consistent with information provided in solicitations
- Available for consumers to review at the time of sale before signing
- None of the above NONE OF THE ABOVE Who issues the Public Offering Statement? ✔✔The Division When should the "duties owed" form be shown? ✔✔During the verification process A blanket encumbrance means any lien which encompasses ✔✔one or more timeshares
According to NRS 119A, who is responsible for instructing an investigation of timeshare violations? ✔✔The administrator Who supervises the administrator? ✔✔The Director of the Department of Business and Industry The administrator shall license as a representative each applicant who ✔✔applies for registration the manner provided by the Division When are the timeshare permit renewals effective after the application is filed? ✔✔30th day after filing the application Each timeshare agent license issued pursuant to NRS 119A expires ✔✔2 years after the last day of the calendar month in which the license was issued Regulation Z means ✔✔1. Truth in Lending
- Disclosure of cost of credit to consumers Who is responsible for paying assessments to the owners association for any unsold timeshares? ✔✔Developer Where does a sales agent work? ✔✔Only where license is hanging How old must sales agent be? ✔✔ 17 years old to apply and 18 to get the license
Sales agent can only work for one broker at a time? True or False ✔✔True Sales agent can only accept commission from the Broker: True or False ✔✔True Fiduciary Responsibility: ✔✔A sales agent must turn over all monies "PROMPTLY" or within "REASONABLE TIME" or within "ONE BUSINESS DAY" or within "24 HOURS" TSA ✔✔TIMESHARE AGENT TSR ✔✔TIMESHARE REPRESENTATIVE TSR Keywords ✔✔Induce or Solicit Must re-register every year 1 year renewal of license fill out approval form and pay a fee to get license TSA Keywords ✔✔Re-licensed every 2 years 14 hours of pre-licensing education 6 hours of continuing education Real Estate Division "if you need a refund... " request from who? ✔✔REFUND FROM THE STATE
If an advance fee is charged by a timeshare resale broker, what is the percentage of the fee that must be deposited into his trust account? ✔✔100% When the administrator imposes discipline upon a timeshare agent, who hears an appeal of that decision? ✔✔A hearing officer appointed by the administrator The developer is required to pay to the Division a fee for every unit sold. This fee goes into the ✔✔general fund What kind of license or registration does an OPC need? ✔✔Timeshare representative A sales agent may work for ✔✔only one project broker at any time at the location designated on the license A project broker shall give written notice to the Division of a change of association of any sales agent associated with him within ✔✔ 10 days after change A sales agent's license may be suspended or revoked by the ✔✔administrator Since timeshare resales are regulated under 119A, during promotional meetings, a sales agent ✔✔1. must not provide information regarding timeshare resales
- may discuss future profits from the resale of a timeshare
- must be disclose the developer's past performance regarding timeshare resales
- none of the above
(correct: none of the above) All offerings or advertisements pertaining to timeshare must be approved by the ✔✔Division Which of the following types of advertising does not need to be approved by the Division? ✔✔1. Newspaper advertisements under 2 column inches in length
- Radio advertisements
- Television advertisements
- none of the above (correct: none of the above) An owner who has a leasehold in a timeshare condominium has ✔✔an interval of time The majority of timeshare owners purchase ✔✔fee simple deed and title A vast majority of timeshare owners report that exchanges are ✔✔successful Which of the following statements is not correct? ✔✔The administrator shall issue a preliminary permit as long as the appropriate fee is paid
For unsold timeshare units, who is responsible for assessment? ✔✔Developer, unless a subsidy agreement has been entered into with the owners association To ensure that the budget for annual expenses of a timeshare project is covered, who is responsible for paying assessments on unsold timeshare interests? ✔✔Developer Which of the following statements is false about timeshare representatives? ✔✔they can only make honest representation concerning the merits or value of a timeshare project A developer shall NOT ✔✔1. offer to sell any timeshare in this state unless he holds a preliminary permit or a permit to sell timeshares issued by the administration
- sell any timeshares in this state unless he holds a permit to sell timeshares issued by the administration
- offer to sell or sell a timeshare in this state unless he has named a person to at as a project broker
- do all of the above (correct: do all of the above) If a developer conducts business that is NOT in compliance with the provisions of NRS 119, the administrator may issue an Order of Cease to the developer. The developer may then file a petition for a hearing within how many days after receiving the Order of Cease? ✔✔30 days Where are the license feed paid by timeshare agents deposited? ✔✔In the general funds
Can a timeshare agent pay a referral fee to another timeshare agent ✔✔No, because all compensation for licensed activity must come from the broker How long is a developer's registration valid for? ✔✔ 1 year What is the minimum age which a person may receive a timeshare license? ✔✔ 18 A project broker shall give a written notice to the Real Estate Division of a change of association of any sales agent affiliated with him within ✔✔10 days Developer Smith is planning to sell timeshares in Nevada. He may sell ✔✔timeshares in Nevada with a permit issued by the Division The Chief Officer of the Real Estate Division is the ✔✔Administrator of the Real Estate Division The authorization issued by the administrator to a developer to sell, or offer to sell, timeshares is called the ✔✔preliminary permit What effect does the existence of a "blanket encumbrance" have on the sale of timeshare at a project? ✔✔Escrow may not close unless the project is free of any "blanket encumbrance" The day-to-day operation of a timeshare resort facility is done by the ✔✔resort manager employed by the project developer or owners association
- telemarking advertising
- press releases that are initiated by the project broker
- none of the above (correct: none of the above) The MAXIMUM filing fee that the Division will charge for the approval of advertising is ✔✔ 3 years The maximum period a customer has to rescind a contract based on fraud is ✔✔one year after the date of discovery of the misrepresentation A timeshare sales agent or timeshare representative must work for ✔✔a project broker The Division can impose fines or revoke the license or permit of any project broker or developer who does NOT allow or cooperate fully with the inspection of ✔✔1. current customer files
- customer cancellation fees
- trust account records
- all of the above all of the above Each project broker need NOT keep their files copies of which signed documents that pertain to the sale? ✔✔OPC invitation
Alchemy Timeshare Resort invites its prospective purchasers to use their credit cards to make their own payment. A timeshare sales agent working for Alchemy defies that this can work to his favor as a way to keep the prospective purchaser at the table so he can wear them down to the point they will purchase. In Nevada, how long may a timeshare sales agent keep the prospective purchaser's credit card? ✔✔Only for the time reasonably required to the check the prospect's credit Your sales director wants to improve the general communication skills of the timeshare sales force. Having been a former CIA agent, he thinks that a good practice would be to plant eavesdropping "bugs" around the sales room to allow him to listen in on the sales presentations and on the customer reactions. Is this permissible in Nevada? ✔✔Yes, as long as the prospective purchasers are informed and there is a prominently displayed sign stating the practice is in effect. A project broker shall give written notice to the Division of a change of association any sales agent within how many days of the change? ✔✔10 days If a permit is issued before completion of the timeshare project, the permit MUST state ✔✔1. all partners of the developer
- the estimated completion date of the project
- the terms of any blanket liens on the property
- all of the above all of the above For proceedings held pursuant to the provisions of NRS 119A, who may appoint a hearing officer from the staff of the Department of Business and Industry? ✔✔Administrator
