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Broker Sandra lists a home for seller David. A cooperating salesperson from another brokerage, James, brings a buyer client to tour the property. Which statement correctly describes the agency disclosure obligations in this situation under New Jersey law?

Correct Answer

D) Both Sandra and James must ensure the CIS has been provided to their respective clients

Under N.J.A.C. 11:5-6.9, every licensee is independently responsible for providing the Consumer Information Statement to the consumer with whom they are working at first substantive contact. Sandra must provide it to David (the seller), and James must provide it to his buyer client. The obligation is not transferable between cooperating brokerages.

Answer Options
A
Only Sandra must provide a Consumer Information Statement because she holds the listing
B
James must provide the CIS only if his buyer client signs a buyer representation agreement
C
Neither Sandra nor James needs to provide a CIS since the property is already listed
D
Both Sandra and James must ensure the CIS has been provided to their respective clients

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Related Topics & Key Terms

Key Terms:

consumer_information_statementcooperating_brokeragency_disclosureCIS

Related Concepts

An agency relationship created by the conduct or actions of the parties rather than by a written or oral agreement.

The legal obligation to reveal information that could affect a party's decision to enter into or the terms of a real estate transaction.

The extent of power and actions an agent is authorized to perform on behalf of the principal, as defined by the agency agreement.

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