Agency
Under NJ agency law, the agent's duty of 'accounting' requires the agent to:
AFile tax returns for the principal
BKeep accurate records of all money and property received on behalf of the principal and provide accountings upon request✓ Correct
CApprove all financial decisions made by the client
DHire a CPA for all real estate transactions
Explanation
The fiduciary duty of accounting requires agents to maintain accurate records of all money and property handled on behalf of the principal, promptly deposit funds in appropriate accounts, and provide accountings when requested. This applies to broker escrow accounts in NJ transactions.
Related New Jersey Agency Questions
- The expiration of a NJ listing agreement automatically terminates the agency relationship unless:
- When must a NJ licensee disclose their agency relationship in writing?
- Designated agency in New Jersey allows a broker to:
- Dual agency in New Jersey is:
- A cooperating broker in a MLS transaction typically acts as a:
- A latent defect is one that:
- An agent's duty to OBEY the principal's lawful instructions means:
- Which agency relationship exists when a New Jersey licensee works with a buyer but has NO written buyer agency agreement?
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