Nevada Timeshare License Practice Exam

What information must a developer disclose when marketing an exchange program with a timeshare purchase?

1. A list of all timeshare owners

2. Disclosure of Interest, including major shareholders

3. Details of maintenance fees

4. Contact information for previous purchasers

The correct answer is: Disclosure of Interest, including major shareholders

When marketing an exchange program associated with a timeshare purchase, it is essential for the developer to disclose information about any interests in the exchange program, which includes details about major shareholders. This requirement is crucial for transparency and helps potential buyers understand who is behind the development and the exchange program. By knowing the key stakeholders, purchasers can assess the financial stability and credibility of the developers involved, which can significantly influence their decision-making process. Other options may seem relevant but do not align with the specific disclosure requirements mandated in the context of marketing an exchange program. For instance, a list of all timeshare owners is not typically required for marketing purposes, as it relates more to privacy concerns and does not provide insight into the financial interests of the potential developer. While details of maintenance fees are important for potential buyers to understand ongoing costs, they are not specific to the exchange program itself. Contact information for previous purchasers may offer some insights into buyer satisfaction but, again, does not address the critical aspects of major stakeholder disclosure related to the operation and financial backing of the exchange program.