Question 37

The New Jersey Real Estate Timeshare Act does not apply to a share plan where the purchasers' total financial obligation is less than $5000.

The Act specifically excludes timeshare plans with a total financial obligation of less than $5000, meaning they do not fall under the regulatory framework set by the Act.

A) consisting of 10 units

This option is incorrect because the number of units in a timeshare plan does not determine its applicability under the New Jersey Real Estate Timeshare Act. Therefore, a share plan consisting of 10 units would still be subject to the Act's provisions.

B) extending over a 5 year period only

This option is also incorrect. The duration of a timeshare plan, such as a 5-year period, does not exempt it from the requirements of the Act. The Act applies regardless of the length of the timeshare agreement.

C) already approved by the Department of Commerce

This option is incorrect as well. Plans that have been approved by the Department of Commerce still fall under the jurisdiction of the New Jersey Real Estate Timeshare Act. Approval does not exempt a plan from the Act's regulations.

D) where the purchasers total financial obligation is less than $5000

This option is correct because the New Jersey Real Estate Timeshare Act specifically states that it does not apply to timeshare plans where the purchasers' total financial obligation is less than $5000, making it a clear exception.

Conclusion

In summary, the New Jersey Real Estate Timeshare Act clearly does not apply to share plans with a total financial obligation below $5000, making option D the correct choice. Conversely, all other options remain subject to the Act's regulatory framework and do not qualify for exemption. Thus, D is definitively the only correct answer in this context.