Nevada Timeshare License Practice Exam

What should a timeshare sales agent do if they discover a title is "un-merchantable" due to an easement?

1. Attempt to sell the unit anyway

2. Inform the purchaser and cease attempts to sell

3. Sell the unit at a discounted price

4. Seek to remove the easement before selling

The correct answer is: Inform the purchaser and cease attempts to sell

If a timeshare sales agent discovers that a title is "un-merchantable" due to an easement, the appropriate action is to inform the purchaser and cease attempts to sell. This is fundamentally important because an un-merchantable title indicates that there are legal encumbrances or restrictions on the property that could significantly affect the buyer's rights and use of the property. Transparency and ethical standards in real estate transactions demand that buyers are fully aware of any potential issues that could affect their ownership experience. By notifying the purchaser about the un-merchantable status, the agent upholds their professional responsibility and protects the interests of the buyer. Continuing to attempt to sell a property with a problematic title could lead to legal repercussions and damage the agent's credibility. The other options do not align with ethical practices and could create potential legal consequences. Attempting to sell the unit despite knowing about the title issues disregards the buyer's right to informed consent. Selling at a discounted price would not resolve the underlying problem of the easement, and seeking to remove the easement could be complex and time-consuming, potentially delaying or jeopardizing any future sale. Thus, informing the purchaser and halting the sale process is the most responsible course of action in this scenario.