New Jersey Real Estate Practice 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 (Option C). This transparency is crucial to avoid conflicts of interest and ensure fair dealings.
Option A is incorrect because disclosure is not contingent on inquiries from the other party's agent. Option B is irrelevant; the lack of errors and omissions insurance does not necessitate disclosure of licensed status. Option D is also incorrect, as a relative's past residence in the property does not impact the need for disclosure regarding the licensee's status. Clear disclosure fosters trust and integrity in transactions.
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