New Jersey Real Estate License Exam Practice Question

A licensee must provide disclosure of licensed status when acting as a principal if

Correct Answer: C

Rationale: When acting as a principal, a licensee must disclose their licensed status if they have any economic interest in the property (C). This transparency helps maintain trust and integrity in real estate transactions.

Option A is incorrect because disclosure is required regardless of whether the other party's agent inquires. Option B is irrelevant; not having errors and omissions insurance does not affect the requirement for disclosure. Option D is also incorrect, as the residence history of a relative does not necessitate disclosure of the licensee’s status. Thus, option C is essential for ethical practice in real estate.

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