Principles, Property, and Land Use Practice Question

Question

A client asks whether a fact should be disclosed for the New Jersey Real Estate Salesperson Exam involving restrictive covenants and New Jersey disclosure and consumer protection practice. Which answer best reduces risk? (Item 48)

Answer choices

1. A. The affiliated licensee may handle the matter independently without broker responsibility.
2. B. Local custom controls even when a statute, regulation, contract, or disclosure rule applies.
3. C. The requirement matters only when the buyer obtains institutional financing.
4. D. Recognize private deed or association limits on property use in a way that fits New Jersey exam practice.

Correct Answer

D. Recognize private deed or association limits on property use in a way that fits New Jersey exam practice.

Explanation

The correct answer is D because restrictive covenants requires candidates to recognize private deed or association limits on property use. The New Jersey reference keeps the scenario tied to state licensing practice, while the other options rely on unsafe assumptions about oral custom, escrow, client preference, independent licensee authority, or ignoring written duties.

Question details

• Difficulty: hard
• Domain: Principles, Property, and Land Use
• Objective: restrictive covenants

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