Nevada Timeshare License Practice Exam

What is a Sales Agent's duty concerning material defects in a timeshare project?

1. To keep such defects confidential.

2. To disclose them even if it harms the developer.

3. To ignore them if not mentioned in the contract.

4. To report them solely to the developer.

The correct answer is: To disclose them even if it harms the developer.

A Sales Agent's duty concerning material defects in a timeshare project is to disclose them even if it harms the developer. This duty aligns with ethical standards and legal obligations that require real estate professionals to act with honesty and integrity. Material defects are issues that could significantly affect the value or desirability of a timeshare property, and withholding such information from potential buyers would be misleading. Transparency is crucial in real estate transactions, particularly in timeshare sales, where buyers invest significant amounts of money and are entitled to make informed decisions. By disclosing material defects, the Sales Agent not only fulfills their legal responsibilities but also builds trust with potential buyers. This approach protects the interests of the consumers and upholds the integrity of the industry, reinforcing the premise that ethical considerations should take precedence over the developer's short-term interests. In contrast, keeping defects confidential or ignoring them if not mentioned in the contract would violate the duty of disclosure. Reporting solely to the developer does not serve the best interests of potential buyers and can lead to ethical breaches, as the agent must represent the buyer's interests fairly in the transaction.