New Jersey Real Estate Exam Practice Question
The broker's principal is the seller. The buyer is a customer from a different brokerage company. The broker may be guilty of misrepresentation if the broker knows, but chooses NOT to disclose, that the
Correct Answer: A
Rationale: In this scenario, the broker's duty is to represent the seller while also adhering to ethical standards.
Option A highlights a significant change that could drastically affect the property's value and the buyer's decision. Failing to disclose the impending highway construction constitutes misrepresentation due to its material impact on the property.
Option B, while concerning, does not necessarily indicate a legal obligation to disclose since it pertains to past events rather than future implications.
Option C is relevant to the seller's situation but does not directly affect the property's value or the buyer's decision-making process.
Option D addresses changing demographics, which may not be a definitive factor affecting the property’s immediate value or usability.
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