Agency
A NJ seller's agent who negotiates an offer and does NOT disclose to the buyer that the home's basement floods during heavy rain has potentially committed:
AA legal non-disclosure since it is the seller's decision
BActive or fraudulent misrepresentation by omission of a known material fact✓ Correct
CAn appropriate confidentiality measure
DA violation only if the buyer specifically asked about flooding
Explanation
Known material defects—including flooding—must be disclosed under NJ's Seller's Disclosure Notice and the agent's duty not to misrepresent. Failing to disclose known flooding constitutes fraudulent misrepresentation by omission.
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