A Tennessee timeshare resort offers buyers a free vacation package as an incentive to attend a sales presentation. During the presentation, a salesperson tells prospective buyers that if they sign the contract today, they will receive a bonus gift worth $500. After signing, a buyer named Patricia wants to rescind the contract. The salesperson tells Patricia that because she accepted the bonus gift, she has waived her right to rescind. Under the Tennessee Timeshare Act, which statement is accurate?
Correct Answer
A) Patricia retains her five-day rescission right; the statutory right to rescind cannot be waived by accepting a promotional gift or incentive
Under the Tennessee Timeshare Act, Tenn. Code Ann. § 66-32-114, the buyer's five-day right to rescind a timeshare contract is a mandatory statutory protection that cannot be waived, conditioned, or eliminated by the developer or salesperson. Accepting a promotional gift, bonus, or incentive during the sales process does not affect or reduce the buyer's rescission rights. The salesperson's claim is legally incorrect and potentially constitutes a deceptive practice.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The National Do Not Call Registry is a federal program administered by the FTC that allows consumers to opt out of receiving unsolicited telemarketing calls, including calls from real estate agents soliciting business.
Brokers in Florida have strict responsibilities for managing escrow accounts, including monthly reconciliation and proper handling of trust funds.
FREC has the authority to impose fines and other disciplinary actions on licensees who violate real estate laws and rules.
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