Contracts
A NJ seller who discovers a material defect AFTER the contract is signed but BEFORE closing should:
AWait until after closing to disclose
BDisclose the newly discovered defect to the buyer promptly to avoid fraud liability✓ Correct
COnly disclose if the buyer asks
DHave the broker handle it without telling the buyer
Explanation
If a seller discovers a material defect after contract signing, they must disclose it to the buyer before closing. Concealing newly discovered defects would constitute fraudulent misrepresentation and expose the seller to substantial liability.
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