Tennessee Real Estate Practice Exam

Which of the following is NOT a valid reason for the cancellation of a timeshare contract?

1. Did not view property

2. Change of mind

3. Misrepresentation in the sales pitch

4. Legal dispute with seller

The correct answer is: Change of mind

Changing your mind about a purchase is commonly known as "buyer’s remorse" and generally does not qualify as a valid reason to cancel a timeshare contract. Real estate agreements, including timeshare contracts, are considered binding once executed by both parties, and unless specific laws or conditions apply, simply deciding you no longer want the property is not sufficient for cancellation. In contrast, other situations are recognized as valid grounds for cancellation. Not viewing the property can be seen as a failure to meet necessary conditions for informed consent to the contract, potentially allowing for cancellation. Misrepresentation in the sales pitch is a significant issue that can void a contract since it undermines the integrity of the agreement by providing false or misleading information. Finally, a legal dispute with the seller may involve legitimate grievances or issues that can justify cancelling the contract, especially if it violates consumer protection statutes or contractual obligations. Understanding these distinctions is crucial for real estate practice, as it highlights consumer rights and the standards of ethical sales practices.