A Tennessee timeshare buyer named Robert exercises his statutory right to rescind a $15,000 timeshare contract on the third day after signing. The resort acknowledges the rescission but tells Robert that it will take 90 days to process his refund. Under the Tennessee Timeshare Act, which statement best describes the resort's refund obligation?
Correct Answer
C) The resort must refund all payments promptly after receiving the valid rescission notice, and unreasonable delay may constitute a violation of the Tennessee Timeshare Act
Under the Tennessee Timeshare Act, Tenn. Code Ann. § 66-32-114, when a buyer validly rescinds a timeshare contract within the five-day period, the developer must refund all payments made by the purchaser. The refund must be made promptly, and unreasonable delay in processing the refund can constitute a violation of the Act. A 90-day processing delay would not be considered prompt and could expose the resort to regulatory action by TREC.
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Related Topics & Key Terms
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Related Concepts
Price fixing is an illegal antitrust practice in which competing real estate brokerages agree to charge the same commission rates, fees, or other pricing for their services. It is a per se violation of the Sherman Antitrust Act.
Florida brokers are required to maintain transaction records and escrow records for a minimum of five years.
A tie-in arrangement is an illegal antitrust practice in which a seller conditions the purchase of one product or service on the buyer's agreement to purchase a separate product or service.
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