Agency
In NJ, an agent representing a buyer who learns during negotiations that the seller is in financial distress should:
AImmediately tell all prospective buyers
BUse this information to advise the buyer on negotiating strategy, as this information about the seller's motivation is relevant to the buyer✓ Correct
CRefuse to share it as it is confidential
DReport it to the NJREC
Explanation
A buyer's agent owes their client the duty of disclosure. Information about the seller's motivation or financial distress that is discoverable through legitimate means (such as public foreclosure filings or disclosures by the seller's agent) should be shared with the buyer to inform their negotiating strategy.
People Also Study
Related New Jersey Questions
- The duty of disclosure requires a NJ agent to tell their client about:Agency
- In New Jersey, when a buyer's agent learns their buyer client is willing to pay more than their offer price, the agent must:Agency
- Under NJ agency rules, an agent's duty of confidentiality to a former client regarding information obtained during the relationship:Agency
- In New Jersey, a real estate licensee's fiduciary duty of 'loyalty' to a seller client means the agent must:Agency
- An appraiser in New Jersey who is hired by a lender for a mortgage appraisal owes their primary duty to:Property Valuation
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.
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.
AgencyA legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.
Study This Topic
Practice More New Jersey Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free New Jersey Quiz →