New Jersey Real Estate Practice Exam Practice Question
A sales associate takes a listing in the name of a sponsoring broker. When a dispute arises between the sales associate and the seller,
Correct Answer: D
Rationale: In a real estate transaction, the sponsoring broker is ultimately responsible for the actions of their sales associates. This means that even if a dispute arises, the broker may be held accountable for the associate's conduct.
Option A is incorrect because terminating the listing is not a necessary or automatic response to a dispute. Option B misrepresents the situation; a breach of fiduciary duty would depend on the specific actions taken, not simply the existence of a dispute. Option C overlooks the broker's responsibility; the sales associate is not solely liable for the situation.
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