A New Jersey real estate salesperson represents a buyer and learns that the seller has received another offer. The salesperson's buyer has not yet submitted an offer. Under the fiduciary duty of disclosure, what must the salesperson do?
Correct Answer
A) Disclose to the buyer that there is another offer on the property so the buyer can make an informed decision
The fiduciary duty of disclosure requires a buyer's agent in New Jersey to promptly share all material facts with the buyer client. The existence of a competing offer is a material fact that directly affects the buyer's decision about whether to submit an offer and at what price. The salesperson must inform the buyer immediately so the buyer can act with full information.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A situation where a single agent or brokerage represents both the buyer and the seller in the same real estate transaction.
An agency relationship created by a clear, explicit agreement between the principal and agent, either orally or in writing.
The highest legal obligation of trust and confidence owed by an agent to their principal, requiring the agent to act solely in the principal's best interest.
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