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Exam New-Jersey-Real-Estate-Salesperson Topic 1 Question 100 Discussion

Actual exam question for Real Estate's New-Jersey-Real-Estate-Salesperson exam
Question #: 100
Topic #: 1
A real estate licensee is a partial owner of a local inspection company. It is permissible for the licensee to tell all clients to use this company when:

Suggested Answer: D Vote an answer

Under RESPA Section 8 and NJREC rules:
A licensee with a financial interest in a related service company (e.g., inspections, title, mortgage) must provide full disclosure in writing to the client.
Without disclosure, this is considered a conflict of interest and a violation.
Disclosure allows the client to make an informed decision and choose alternatives.
Correct answer = D.
Reference: RESPA (Real Estate Settlement Procedures Act); NJREC Rules on Conflicts of Interest.

by Elmer at Dec 26, 2025, 08:47 AM

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