If a title of a project is described as "un-merchantable," what should a timeshare sales agent do?

Study for the Timeshare License Test. Prepare with flashcards and multiple choice questions, each with hints and explanations. Master your exam!

When a title of a project is described as "un-merchantable," it signifies that the title is not free from defects and may not be transferable or marketable, which can pose significant legal and financial risks for potential buyers. In a situation like this, a timeshare sales agent has a responsibility to uphold ethical standards and protect consumer interests.

Choosing not to attempt to sell a unit with an un-merchantable title is the most prudent course of action. This is because selling such a unit could expose the sales agent, the company, and the buyers to legal complications and potential loss of investment. Agents must ensure that what they are selling is legally sound and can be freely enjoyed by the buyers without future encumbrances. By avoiding sales in this scenario, the agent maintains professional integrity and protects clients from future disputes that may arise from owning a property with title defects.

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