New Jersey Real Estate License Exam Practice Question
A real estate licensee is a partial owner of a local inspection company. It is permissible for the licensee to tell all clients to use this company when:
Correct Answer: D
Rationale: A: While acting in the client's best interest is crucial, recommending a company in which the licensee has a financial interest without disclosure can lead to conflicts of interest.
B: Lack of knowledge about other title companies does not justify steering clients to a company where the licensee has a financial stake, as it may compromise impartiality.
C: Just because a client does not ask for other recommendations does not alleviate the responsibility to disclose any potential conflicts of interest.
D: Transparency through disclosure ensures that clients are informed about the licensee's relationship with the inspection company, allowing them to make an educated choice.
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