Agency
A NJ buyer's agent who discovers a material defect in a seller's property during a showing must:
AKeep the information confidential to avoid harming the deal
BDisclose the known material defect to the buyer✓ Correct
CReport the defect only to the NJREC
DInform only the listing broker
Explanation
A buyer's agent owes their client the duty of disclosure. Any known material defect affecting the property's value or desirability must be disclosed to the buyer, even if it might harm the transaction.
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Key Terms to Know
Buyer's Agent
A real estate licensee who represents the buyer's interests in a transaction, owing fiduciary duties to the buyer.
Adjustable-Rate Mortgage (ARM)A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.
LienA financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
Fiduciary DutyThe highest legal duty an agent owes to a principal — requiring the agent to act in the principal's best interest above all others.
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