Humber/Ontario Real Estate Course 1 Exam Practice

Buyer Winters purchased a timeshare interest in a ski area just north of Toronto covering a two-week period in February. Which of the following statements is correct about that purchase?

1. Winters has the ability to sell or otherwise dispose of that timeshare, if she has purchased it as a right-to-use interest.

2. Winters can avail herself of the cooling off period, but only when the purchase involves a fee ownership interest, not a right-to-use interest.

3. The Consumer Protection Act is the legislation that provides the cooling off protection for timeshare purchases in Ontario.

4. Timeshares are regulated under the Residential Tenancies Act in regard to rights and responsibilities of owners.

5. The terms of the timeshare contract cannot be altered once signed.

6. Timeshare purchases are not subject to any cooling-off period according to Ontario regulations.

The correct answer is: The Consumer Protection Act is the legislation that provides the cooling off protection for timeshare purchases in Ontario.

The correct answer is C because the statement accurately reflects the legislation that provides cooling off protection for timeshare purchases in Ontario. The Consumer Protection Act in Ontario specifically includes provisions for cooling off periods for timeshare purchases, giving buyers the opportunity to cancel a purchase within a certain timeframe without penalty. This legislation aims to protect consumers from potentially high-pressure sales tactics or buyer's remorse in timeshare transactions. Regarding the other options: A. This statement is not correct as the ability to sell or dispose of a timeshare would depend on the type of interest purchased and the terms outlined in the contract. B. The cooling off period in Ontario can apply to both fee ownership and right-to-use interests, so this statement is inaccurate. D. Timeshares are not regulated under the Residential Tenancies Act, as this act pertains to rental agreements for residential properties, not timeshare interests. E. The terms of a timeshare contract can be subject to negotiation or amendment based on mutual agreement between the parties involved, so this statement is not true. F. Timeshare purchases in Ontario are indeed subject to a cooling-off period mandated by the Consumer Protection Act, so this statement is incorrect.