New Jersey Real Estate Exam Practice Question
A broker representing a seller is reviewing a contract for sale, and discovers that the buyer is signing as a corporation. The broker should take all of the following steps to ensure the validity of the contract EXCEPT
Correct Answer: C
Rationale: To ensure the validity of a contract with a corporate buyer, confirming the corporation's existence (A) and obtaining a board resolution (D) are essential steps that validate the authority of the signer. A personal guarantee (B) adds security by ensuring accountability from the individual signing on behalf of the corporation. However, obtaining a power of attorney (C) from the seller is unnecessary in this context, as the broker already represents the seller and does not require additional authorization to negotiate on their behalf. Thus, option C is not a required step.
Unlock All Questions
Subscribe to Premium for full access to all practice questions, detailed rationales, and performance tracking.
Subscribe Now