Nevada Timeshare License Practice Exam

When must the Duties Owed disclosure be made by the Sales Agent?

1. After contracts are signed.

2. Before any contracts are signed.

3. At the closing of the sale.

4. Only if defects are reported.

The correct answer is: Before any contracts are signed.

The Duties Owed disclosure must be made by the Sales Agent before any contracts are signed. This requirement is in place to ensure that prospective buyers are fully informed about the agent's responsibilities and the nature of their relationship before any binding agreements are established. Providing this information early in the process helps to establish transparency and trust between the agent and the buyer. It allows buyers to understand what they can expect from the agent in terms of representation, thus ensuring they are making informed decisions. Making the disclosure before contracts are signed also aligns with best practices in real estate, where ethical standards dictate clear communication between agents and clients from the outset. This proactive approach helps prevent any misunderstandings later in the transaction, thereby contributing to a smoother sales process and reducing the likelihood of disputes related to the agent's duties.