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Broker-salesperson Diana works under supervising Broker Ken at XYZ Realty. Diana enters into a dual agency arrangement in a transaction. Under New Jersey law, who bears primary responsibility for ensuring that proper dual agency disclosures and written consents are obtained?

Correct Answer

D) Both Diana and Broker Ken share responsibility, with Ken bearing ultimate supervisory accountability

Under New Jersey law, while Diana as the licensee directly involved in the transaction has a personal obligation to make proper dual agency disclosures and obtain written consent, Broker Ken bears ultimate supervisory responsibility for the conduct of licensees working under him. N.J.S.A. 45:15-1 et seq. and NJREC regulations impose supervisory duties on brokers for the activities of their affiliated licensees, making both Diana and Ken accountable—with Ken carrying the overarching supervisory accountability.

Answer Options
A
Diana alone, because she is the licensee directly involved in the transaction
B
The New Jersey Real Estate Commission, which must approve all dual agency arrangements
C
The title company handling the closing, as they verify all agency disclosures at settlement
D
Both Diana and Broker Ken share responsibility, with Ken bearing ultimate supervisory accountability

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Related Topics & Key Terms

Key Terms:

dual_agencybroker_supervisionbroker_salespersonsupervisory_responsibility

Related Concepts

An agency relationship where the agent agrees to act on behalf of the principal without receiving compensation.

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.

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