New Jersey Real Estate Practice Exam Free Practice Question
A buyer informs a listing salesperson that the buyer plans to subdivide the property and then list it with the salesperson as soon as the offer is accepted. The salesperson makes no mention of the buyer's plans to the seller and the buyer's offer is then accepted. The salesperson's conduct is in violation of the New Jersey License Law because the salesperson failed to:
Correct Answer: C
Rationale: In this scenario, the salesperson's failure to disclose the buyer's intent to subdivide the property creates a potential conflict of interest, which is critical to maintaining transparency in real estate transactions. By not informing the seller, the salesperson compromised the seller's ability to make an informed decision.
Option A is incorrect because advising the buyer on subdivision approval is not the salesperson's primary duty in this context. Option B is also incorrect; while a brokerage agreement is important, it does not directly address the ethical obligation to disclose conflicts. Option D is irrelevant, as the broker's involvement does not mitigate the need for transparency regarding the buyer's plans.
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