Maria is a New Jersey licensee representing the Garcias as their buyer's agent. During a showing, Maria notices that the furnace appears to be very old and likely near the end of its useful life, but the seller has not mentioned this in the disclosures. Under her fiduciary duty to the Garcias, what should Maria do?
Correct Answer
B) Disclose the observation to the Garcias and recommend they have the furnace professionally inspected
As a buyer's agent in New Jersey, Maria owes the Garcias fiduciary duties including the duty of disclosure and the duty of reasonable care. She must promptly disclose all material facts she observes that could affect the buyers' decision, including the apparent age and condition of the furnace. Recommending a professional inspection fulfills her duty of reasonable care by ensuring the buyers have complete information before proceeding.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A non-agency relationship where the broker facilitates a real estate transaction without representing either party, owing limited duties of honesty, fairness, and competence to both.
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.
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