Nevada Timeshare License Practice Exam

Which statement about an owners' association is FALSE?

1. It is formed to manage maintenance of the property

2. It negotiates contracts with service providers

3. It is formed primarily for selling timeshare interests

4. It represents the interests of the timeshare owners

The correct answer is: It is formed primarily for selling timeshare interests

An owners' association is fundamentally established to oversee the common interests and management of a timeshare property. Its main roles include managing maintenance, negotiating contracts with various service providers to ensure the property is well-maintained, and representing the collective interests of the timeshare owners. Selecting that an owners' association is formed primarily for selling timeshare interests is inaccurate. The primary purpose is not to facilitate the sale of timeshare interests, but rather to manage and maintain the shared property for existing owners. Once the timeshares are sold, the association's focus shifts toward management and sustaining the value of the property for the benefit of the owners who have already invested in timeshare interests. Thus, the assertion that the association’s principal function is to sell timeshare interests fails to reflect its true role within timeshare ownership.