Download NEVADA TIMESHARE LICENSE FULL ACTUAL PRACTICE EXAM WITH SOLUTIONS GRADED A+ and more Exams Business Economics in PDF only on Docsity!
NEVADA TIMESHARE LICENSE FULL ACTUAL PRACTICE EXAM WITH
SOLUTIONS GRADED A+
Escrow may NOT be closed until the Buyer's check clears his bank Unit is free and clear of any blanket encumbrances Cancellation period has expired The following elements are necessary to create an agency relationship EXCEPT... Consideration An agent warrants: Integrity in dealings MOST timeshare units are purchased using financing. 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 which of the following? Full disclosure of all financing costs and charges A purchaser must be allowed time to: Fully read any or all documents of their choosing as it relates to the timeshare purchase Discuss the documents with their spouse or any other person they choose Consult an attorney
Federal Reserve Board's Regulation Z is applicable to... All Consumer Credit Which of the following information does Truth in Lending and Regulation Z REQUIRE to be disclosed to a financed purchase of a timeshare? Annual percentage rates, finance charge, amount financed, and total of payments The law that sets the maximum interest that can be charged when financing is the... Usury Law Pledging property in exchange for consideration (money) is known as... Hypothecation If a salesperson refuses to sell an interval to a customer because of their religious beliefs, the agent would be in violation of which law? Fair Housing Act of 1968 A lender is considered... The mortgagee
If the developer uses a purchaser's deposit to buy snacks for those taking tours at the resort, this would be an act of... Conversion What duty does a Sales Agent owe prospective purchasers? Disclose material defects, even if it disadvantages the Developer Duties owed by a Sales Agent must be disclosed when? Before any contracts are signed When is the Duties Owed form presented to the Purchaser? During the Verification Process An Agency Relationship could be formed with a Prospective Purchaser as a result of: Unconscious, involuntary behavior Purposeful, goal directed behavior An unintentional or intentional action A timeshare owner in default shall have how many days in which to pay the amount of a lien to avoid foreclosure, after the notice of default is recorded and a copy of the notice is mailed to the owner by certified mail with postage prepaid? 14 days
A blanket encumbrance means any lien which encompasses... More than one timeshares/units How would a prospective purchaser get the BEST deal on a timeshare? Buy it from an existing owner If a developer markets an exchange program as part of a timeshare purchase, NRS 119a.590 requires a developer to disclose certain information to the purchaser. This would include: Disclosure of Interest, including the names of the officers, directors and shareholders owning at least 5% of the outstanding stock of the exchange company A statement indicating whether the purchaser's participation in the program is dependent upon the continued inclusion of the timeshare plan in the program (what happens if the developer ends its relations with the exchange program) A statement indicating whether the purchaser's membership or participation in the program is voluntary or mandatory The name and address of the company offering the program What words NEVER appear in a timeshare sales contract? Business Investment
NRS 119A
Which of the following would be considered conversion? Depositing the buyer's money and then using that account to pay the company bills By definition, conversion means... Using a buyer's money for any other purpose than it was intended for Contract documents... Must be available for the purchaser to review at the time of sale before signing Must be consistent with the information provided in solicitations Must be written in easy to understand terms Certain laws and regulations govern the amount of interest that can be charged on a loan. They specifically target the practice of charging excessively high rates on loans by setting caps on the maximum amount of interest that can be levied. These laws are designed to protect consumers and are called... Usury Laws What is NOT true about timeshare? An investment for profit or tax advantage
All offerings or advertisements pertaining to timeshare MUST be approved by the... The Division All timeshare advertising MUST display the state approval number which is designated... NAV# Which of these is NOT responsible for the content of advertising used to sell the project? The newspaper that prints the advertising The courts have upheld that a sale practice is "unfair" if it... Is immoral, unethical, oppressive, or unscrupulous The site plan of a timeshare development shows a number of amenities on it. To comply with Nevada law, the developer MUST do all of the following EXCEPT... Avoid the use of testimonials in advertising related to the amenities Which of the following is considered deceptive sales practice by the Federal Trade Commission? Exaggerating the nature and quality of the resort Making inaccurate statements about the exchange privileges Offering premiums that are not actually supplied
EXCEPT for the speaker at the podium, how many additional salespersons may attempt to close the sale after the initial sales presentation? One An advertisement which refers to a community of geographic area in connection with a project MUST... State the mileage from a specific point in that community or area, together with the types of roads traversed Which of the following statements is incorrect? A solicitation need not disclose the purpose for the solicitation How many people constitute a sales / promotional meeting presentation? At least 1 A Developer has a timeshare project in Mexico and will be marketing their project here in Nevada. There will be no sales presence in Nevada, only advertising. The Developer will need to take these steps: (select the best answer) Hire a Project Broker licensed in Nevada and register with the Nevada Real Estate Division as a Developer Any free gift promised as an inducement for a prospective purchaser to attend a presentation may be withheld if the purchaser...
Does not attend the presentation When an advertisement refers to distance, which of the following examples would be acceptable to the Real Estate Division? Actual distance in miles along a road is stated together with the types of roads traversed A "shill" is... Someone affiliated with the project who makes a "dummy" purchase to get the buying going at a promotional meeting. They are a false or decoy buyer. The project developer wants to get sales moving a little. At a Monday sales meeting, the developer tells the sales manager that they can authorize a 25% discount on any deal for the next 5 days. Is this permitted? No, discounts can only be given for quantity purchases or for cash purchases All advertising to be done at a Nevada timeshare project MUST be approved by the... Administrator of the Real Estate Division It is almost 8:00 in the evening. You have been with your prospective purchasers since shortly after 2:00 in the afternoon. You are pretty sure you can close the deal, but they want to talk it over with their son who is a real estate salesman in Dallas. You MUST... Allow them to discuss the transaction with anyone they want, including their son or lawyer
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? Hint: See Appendix B. 20 days Developer Douglas has submitted an application to the administrator for a permit to sell timeshares. The Division shall issue an order within how many days after the receipt of the application? Hint: See Appendix B 60 days A buyer provides their credit card for their down payment on a new timeshare. While the Sales Manager was taking care of some of the paperwork, the couple had second thoughts and asked for their credit card back. The Sales Manager said he would comply, but did not return to the table with the buyer's credit for 30 minutes. Is there a problem here? Why or why not? Yes, there is a problem. A customer can not be held "hostage" by not returning their credit card. The card can be held only long enough to check their credit. Reasonable assessments (maintenance fees) that remain unpaid, may become a lien on the property. This lien might include all of the following EXCEPT... Sales expenses A government, governmental agency, or a political subdivision of the government is known as... A person
When are timeshare permit renewals effective after the application is filed? Hint: See Appendix B 30th day after filing the application The sale of timeshare interests in the State of Nevada is regulated under the provisions of: NRS 119a The law that regulates real estate in Nevada is: NRS 645 Who appoints the Administrator of the Real Estate Division? The Director of the Department of Business and Industry Who appoints the Director of the Department of Business and Industry? Governor Who selects and appoints the Project Broker? Developer
Which of the following reasons would NOT be cause for the Real Estate Division to deny an application for timeshare sales license? Driving Record 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 to right to revoke for any reason for 5 calendar days Ted and Alice Smith have arrived at their timeshare resort and produced the confirmed reservation for a unit. They are informed that the unit is NOT available. Ted goes through the roof, but Alice knows that they are entitled to all the following EXCEPT... A full refund of their purchase price Any person who, on behalf of a developer, induces other persons to attend a sales presentation is a ... Registered Representative How many hours of continuing education are required for a licensed Timeshare Sales Agent? 6 hours
Mr. Allen was named the project broker at a Nevada timeshare resort. For which of the following most accurately describes the people will he be responsible for? Sales agents and representatives In what year did the Nevada legislature pass the statute governing timeshare sales? 1983 To effect an exchange, an owner of a floating use period MUST first secure a specific week through which of the following? The home resort A Broker that works on behalf of a Developer of Timeshare to coordinate and supervise all sales activities is known as a... Project Broker If the relationship changes between the Sales Agent, Developer and/or the Broker, this must be reported to the Real Estate Division within... 10 days The Division will issue a license to those who follow and complete the process set forth in NRS 119a. Initially, the division will issue a... Provisional License until satisfactory results from the FBI fingerprint background check are received by the Division
NRS 119a applies to... Timeshare if they have more than 12 units
- Upon receipt of cancellation for a reservation to purchase, the developer shall return in full the total deposit, plus any interest earned, within... 20 days Sometimes, Project Brokers maintain their principal place of business somewhere other than the sales office where they have responsibility. In this case, they must do what for each project where they serve as Project Broker? Establish remote offices called Branch Offices and assign a Broker Salesperson to represent them One year ago, you sold a 4-Bedroom timeshare to a nice couple. This is actually 2 condos separated by an adjoining door. Today, you received a phone call from the wife indicating that the couple has decided to divorce. She stated that she wants to divide the timeshare such that he owns one side of the timeshare and that he still wants to own the other side. What do you do? Offer no advice, and that they should speak to their lawyer or one licensed in Nevada A Developer in Mexico has opened their resort, and wants to advertise in Nevada. Which statement is most correct? The Developer would need to register with the Real Estate Division as a Developer in Nevada, and hire a Project Broker licensed in Nevada
Someone purchasing a timeshare as a sole owner will take the title how? Ownership in Severalty When a resort has both whole owners and timeshare interest ownership, the resort is known as a... Mixed use resort Four family members attend the sales presentation and decide to become owners at the resort. They decided to take title as Joint Tenancy With Right of Survivorship (JTWRS). It has been a very successful day selling at the resort and it is taking some additional time to get buyers to the verification office. One of the purchasers has to leave to catch their flight home and leaves. Which statement is most accurate? They will not be able to take title as JTWRS since all four are not available to sign the sales contracts. They will have to take title differently There are countless timeshare resorts throughout the world available for owner use. When owners were surveyed, it was found that most exchanges were reported as... Successful In contractual terms, consideration is... The payment of money
