Nevada Timeshare License Practice Exam

What duty does a Sales Agent have toward prospective purchasers?

1. To ensure a sale

2. Disclose material defects, even if it disadvantages the Developer

3. Confirm the Developer's claims

4. Provide financing options

The correct answer is: Disclose material defects, even if it disadvantages the Developer

The duty of a Sales Agent toward prospective purchasers emphasizes the importance of transparency in real estate transactions, particularly in the context of timeshares. The correct answer highlights the obligation to disclose any material defects associated with the timeshare, even if such disclosures could negatively impact the Developer’s interests. This duty is rooted in ethical standards and legal obligations designed to protect consumers by ensuring they have all relevant information before making a purchase decision. In the timeshare industry, material defects could include issues like undisclosed fees, condition of the property, or limitations on usage. By disclosing these defects, the Sales Agent helps foster trust and allows prospective buyers to make informed choices based on complete and accurate information. This practice not only complies with regulatory requirements but also promotes fairness in the marketplace. The other choices indicate responsibilities that, while potentially relevant in the broader context of sales, do not fulfill the core fiduciary duty of transparency and honesty required in this scenario. Ensuring a sale or confirming the Developer's claims may lead to misleading practices that compromise the interests of the buyer. Additionally, providing financing options, while useful, does not directly address the critical issue of truthfulness regarding the product itself.