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CH21 - Timeshares Exam Questions and Complete Solutons Graded A+
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CH21 - Timeshares Exam Questions and Complete Solutons Graded A+
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CH21 - Timeshares ExamQuestions and Complete
Solutions Graded A+
In North Carolina, someone could be the owner of a room in a high rise beachside resort for one week
out of the year. - Answer: True
Someone signs an agreement giving him the right to spend one week a month in a cabin in Blowing Rock
for an entire year. This is an example of a time share. - Answer: False - To meet the definition of time
share, the arrangement is required to extend over a period of at least five years. The situation described
would not be a time share.
To qualify as a time share, the owner must acquire the right to occupy a unit during five or more
separated time period over a period of at least - Answer: 5 years.
A time share involves a leasehold interest, NOT a freeold interest. - Answer: False - A time share in North
Carolina could involve either a leasehold estate or a freehold estate.
A person who purchases a time share for his or her personal occupancy, use, and enjoyment is not
considered to be a developer. - Answer: True
Time share project registrations expire annually on June 30 and, like a real estate license, must be
renewed. - Answer: True
A time share salesperson is required to be licensed as a real estate broker unless he or she is an
employee of the time share developer whose income is reported on IRS Form W-2, in other words, the
salesperson earns a salary as opposed to being paid commission on a transaction basis. - Answer: True
, A project broker is a natural person licensed as a real estate broker and designated by the developer to
supervise brokers at the time share project [G.S. § 93A-41(7a)]. The role of the project broker is similar
to that of a broker-in-charge. - Answer: True
Someone who wishes to develop a time share project for the purpose of selling time share units in North
Carolina must have a real estate broker license. - Answer: False
A person engaged by a time share developer to sell units in her registered project must be licensed as a
real estate broker if his compensation is transaction-based. - Answer: True - if commission based then
no
A time share instrument, you'll recall, may be a contract, installment contract, lease, or deed, for
example. In an earlier chapter, you learned that In North Carolina, a conveyance instrument must be
registered (recorded) with the Register of Deeds Office to be protected under the Conner Act. If not
recorded, it would be considered void if any other conveyance instruments or liens are later recorded in
the public records. - Answer: True
A time share that in whole or in part burdens or pertains to real property in North Carolina is considered
to be real property. Therefore, purchasers have the right to register the time share instrument used to
transfer the interest. - Answer: True
Unless the purchaser is in default of his or her obligations, the developer must record—or cause to be
recorded—the time share instrument: - Answer: Not less than six days nor more than 45 days following
the execution of the contract of sale by the purchaser, or
Not later than 180 days following the execution of the contract of sale by the purchaser, provided the
developer places all payments made by the purchaser with an independent escrow agent upon the
expiration of a 10-day escrow period.
G.S. § 93A-45(c) indicates that a time share developer or time share salesperson must immediately
deposit any payments received by a purchaser in connection with the sale of the time share into a trust
or escrow account in a federally insured depository institution or a trust institution authorized to do
business in North Carolina. Payments deposited into the trust or escrow account belongs to the
purchaser and not the developer. Deposited funds must remain in the escrow account for at least 10
days or until cancellation by the purchaser, whichever occurs first. - Answer: True
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