Tennessee Real Estate Practice Exam

In timeshare offers, must the retail value of each prize or gift be disclosed?

1. True

2. False

3. Only for prizes over $100

4. Only for major gifts

The correct answer is: True

The requirement to disclose the retail value of each prize or gift in timeshare offers is rooted in consumer protection laws aimed at ensuring transparency. When a company offers prizes or incentives to draw in potential buyers for timeshares, full disclosure about the value minimizes misleading representation and helps consumers make informed decisions. Requiring the disclosure of retail values ensures that consumers understand the worth of what they may receive as part of a timeshare promotion. This is crucial in environments where offers are presented in a manner that could overstate the worth of the prize or gift in correlation to the actual cost or value involved in the timeshare purchase. Understanding this requirement is essential for agents and marketers in the real estate sector to maintain compliance with regulations and uphold ethical marketing practices. Proper disclosure fosters trust and accountability, ultimately benefiting both consumers and businesses in the industry.