New Jersey Real Estate Practice Exam Free Practice Question
A buyer is considering a property in one of the subdivisions of a Planned Unit Development (PUD). The buyer noticed nearby properties having detached garages and workshops. The buyer mentions to their agent that they want to build a detached building on the back of the lot for a home business. There is an HOA for this subdivision. Additionally, there are overarching covenants, conditions, and restrictions (CCR) for the PUD. What actions, if any, should be taken by the broker to assure the buyer can use the property as they wish?
Correct Answer: D
Rationale: To ensure the buyer can use the property as intended, obtaining the current CCRs and HOA documents is essential. These documents outline specific rules regarding property modifications and business operations, providing clarity on what is permissible.
Option A, while important, only addresses architectural review requirements and does not encompass all potential restrictions. Option B is relevant but incomplete without reviewing the CCRs, which may include specific provisions about home businesses. Option C is misleading; just because other properties have detached buildings does not guarantee that the buyer can build one. Comprehensive understanding of CCRs and HOA documents is crucial for informed decision-making.
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