What must be included in the disclosure statement received by timeshare buyers?

Study for the New Mexico Broker State Exam. Study with flashcards and multiple choice questions, each question has hints and explanations. Get ready for your exam!

The proper inclusion of the buyer's total financial obligations in the disclosure statement is critical for transparency and informed decision-making. By outlining exactly what the buyer will be required to pay—this includes not only the purchase price but also additional charges like maintenance fees, assessments, and any other financial responsibilities associated with the timeshare—buyers are better equipped to understand the full scope of their investment. This comprehensive approach helps prevent unpleasant surprises after the purchase and ensures that buyers are fully aware of their potential financial commitments before making a decision.

The other options, while they may contain some important information, do not encompass the entire financial picture that must be provided to the buyer. For instance, simply stating the total number of units or the name of the original developer does not inform the buyer about their specific financial responsibilities. Estimated maintenance fees might give some insight but would not cover all potential charges that could arise over time. Therefore, the most complete and necessary element in the disclosure statement is a detailed account of what the buyer will have to pay, including all charges associated with the timeshare.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy