A Tennessee timeshare developer registered with TREC sells a timeshare interest to a buyer from Georgia who signs the contract at the Tennessee resort. The Georgia buyer argues that because she is an out-of-state resident, Georgia's timeshare rescission law — which provides a ten-day rescission period — should apply to her purchase. The resort insists that Tennessee's five-day period governs. Under Tennessee law, which statement is most accurate?
Correct Answer
D) Tennessee's five-day rescission period applies because the contract was executed in Tennessee at a TREC-registered timeshare project, and Tennessee law governs transactions occurring within its borders
Under the Tennessee Timeshare Act, Tenn. Code Ann. § 66-32-101 et seq., the Act governs timeshare interests sold in Tennessee, including sales made at Tennessee-registered timeshare projects to out-of-state buyers. Because the contract was executed in Tennessee at a TREC-registered project, Tennessee law — including the five-day rescission period — applies to the transaction. The buyer's state of residence does not determine which state's timeshare law governs the sale.
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Related Topics & Key Terms
Key Terms:
Related Concepts
FREC has the authority to impose fines and other disciplinary actions on licensees who violate real estate laws and rules.
A group boycott is an illegal antitrust practice in which two or more competing real estate businesses agree to refuse to work with a specific person, company, or entity in order to harm that party's ability to compete.
In real estate, the distinction between an independent contractor and an employee determines tax treatment, liability, and the level of control a broker may exercise over the agent's daily activities. Most real estate agents operate as independent contractors.
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