PSI New Jersey Real Estate State Practice Exam

Which party completes the required property condition disclosure in a single agency relationship?

1. The broker

2. The seller

3. The buyer

4. The agent

The correct answer is: The seller

In a single agency relationship, the seller is responsible for completing the required property condition disclosure. This obligation arises because the seller has the most direct knowledge about the condition of the property, including any material defects or issues that could affect its value or desirability. The property condition disclosure is intended to provide potential buyers with crucial information that they need to make informed decisions regarding the purchase. The broker, while they play an important role in facilitating the transaction, does not take on the responsibility of filling out the disclosure statement. Instead, the broker’s role is to assist the seller in accurately disclosing property conditions and to ensure that the necessary forms are completed properly. The buyer is not responsible for the disclosure, as they are usually the ones receiving this information to evaluate the property. Lastly, the agent, typically acting on behalf of the broker, must ensure that the seller provides the disclosure but does not independently complete it on the seller's behalf.