Tennessee Real Estate Practice Exam

Is it true that the odds of winning a prize or gift in a timeshare offer need to be provided?

1. True

2. False

3. Only if the offer is misleading

4. Only for large prizes

The correct answer is: False

In Tennessee, the regulations surrounding timeshare offers include the requirement for clear and truthful communication regarding any promotions, including prizes or gifts associated with a timeshare presentation. However, if the odds of winning a prize or gift are not legally required to be disclosed, it indicates that presenting the odds is not a mandated practice within these offers. This means that although it is best practice to be transparent about promotional winnings—which builds trust and credibility—there is no legal obligation to provide odds in every instance. Therefore, the statement asserting that the odds need to be provided is false in the context of Tennessee law. This absence of obligation helps create a regulatory framework where not all promotional elements must be laid out in detail, leading to the classification of the statement as incorrect.