Agency
A NJ seller's agent who discovers that the property has a major foundation problem just before showing it to a buyer should:
ASchedule the showing and mention it casually
BDisclose the known material defect to the buyer before or during the showing, and ensure it is properly reflected in the seller's disclosure✓ Correct
CCancel the showing and hope the problem goes away
DTell only the seller and let the seller decide whether to disclose
Explanation
Known material defects must be disclosed proactively. A seller's agent who knows of a major foundation issue must disclose it to prospective buyers and ensure the seller's disclosure reflects the problem—not conceal it.
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Key Terms to Know
Agency
A legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.
Dual AgencyA situation where a single real estate agent or brokerage represents both the buyer and the seller in the same transaction.
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.
Listing AgreementA contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
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