PSI New Jersey Real Estate State Practice Exam

What should a listing agent do if an owner wants to list a property for sale "as is"?

1. Advise the owner to make necessary repairs

2. Question the seller to any known defects

3. Ignore the request and list the property normally

4. Provide a warranty on the property

The correct answer is: Question the seller to any known defects

When a property owner requests to list their property for sale "as is," the most appropriate action for a listing agent is to question the seller about any known defects. This approach is vital for several reasons. Firstly, agents have a fiduciary duty to their clients, which includes being transparent about the property's condition to potential buyers. By understanding the property's known issues, the agent can adequately inform prospective buyers or include disclaimers in the listing. This transparency helps to manage expectations and reduces potential legal issues that might arise from undisclosed defects after the sale. Secondly, knowing the specifics of any defects allows the listing agent to effectively market the property. While the sellers may want the property sold without making repairs, being aware of significant defects helps the agent provide accurate information that can attract the appropriate buyers who are willing to purchase a property under those conditions. Overall, thoroughly questioning the seller provides essential information that safeguards both the seller's and the agent's interests in the real estate transaction.