PSI New Jersey Real Estate State Practice Exam

In a jurisdiction where a seller's property condition disclosure is required, the licensee is responsible for:

1. Ensuring that the seller fills out the disclosure

2. Providing the buyer with the disclosure before closing

3. Ensuring that the buyer receives the property disclosure before the contract is finalized

4. Only preparing the disclosure themselves

The correct answer is: Ensuring that the buyer receives the property disclosure before the contract is finalized

The correct answer emphasizes the licensee's responsibility to ensure that the buyer receives the property condition disclosure prior to the finalization of the contract. This is crucial because it allows the buyer to be fully informed about the property's condition and any potential issues before they make a binding decision to purchase. Timely disclosure is an essential part of maintaining trust in the transaction and upholding legal responsibilities. Providing the buyer with this information before the contract is finalized gives them the opportunity to assess whether they are still interested in proceeding based on the property's condition. It ensures that there are no surprises after the contract is signed, which can lead to disputes or dissatisfaction. In this context, the responsibility of the licensee is not merely to ensure the seller fills out the disclosure or to prepare it themselves; instead, it is a proactive role to ensure that critical information is conveyed to the buyer in a timely manner. This practice aligns with ethical obligations and state regulations in real estate transactions.