A New Jersey licensee is working as a transaction broker (non-agent facilitator) in a real estate transaction. Which of the following most accurately describes the disclosure obligation unique to this relationship under New Jersey law?
Correct Answer
A) The licensee must disclose in writing that they are acting as a transaction broker and not as a fiduciary agent for either party
Under New Jersey law and N.J.A.C. 11:5-6.9, when a licensee acts as a transaction broker (also referred to as a non-agent or facilitator), they must clearly disclose in writing to both parties that they are not acting as a fiduciary agent for either party. This written disclosure ensures both the buyer and seller understand the nature of the relationship—that the licensee is assisting in facilitating the transaction without owing fiduciary duties to either side.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The legal principle that holds a broker responsible for the actions of their agents and employees performed within the scope of the agency relationship.
An agency relationship created when a principal's actions or words lead a third party to reasonably believe that an agent has authority, and the principal fails to correct this belief.
An agency relationship created when a principal approves or accepts an agent's previously unauthorized actions, effectively granting authority after the fact.
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