A licensed New Jersey salesperson, Kevin, is listing a 1960s-era colonial home in Camden. During his walkthrough, Kevin notices discolored paint on the windowsills and doorframes consistent with possible lead-based paint. The seller tells Kevin she is unaware of any lead paint issues. Which of the following best describes Kevin's disclosure obligations under New Jersey law?
Correct Answer
A) Kevin must disclose his observation to prospective buyers because a licensee's duty to disclose extends to material facts that are known or should be known, regardless of the seller's knowledge.
Under New Jersey law, including the New Jersey Residential Property Condition Disclosure Act (N.J.S.A. 46:3C-1 et seq.) and the duties imposed on licensees under the New Jersey Real Estate License Act (N.J.S.A. 45:15-1 et seq.), a licensee has an independent obligation to disclose material facts that are known or reasonably discoverable, even when the seller claims no knowledge. Lead-based paint in a pre-1978 home is a recognized material environmental condition. Kevin's observation of discoloration consistent with lead paint constitutes a material fact he must disclose to prospective buyers, independent of what the seller has told him.
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