New Jersey Salesperson State Practice Exam 2026 - Free Real Estate Practice Questions and Study Guide

Question: 1 / 400

What does the "doctrine of caveat emptor" imply?

The seller must disclose all property issues

The buyer is responsible for checking the quality of a property before purchase

The "doctrine of caveat emptor," which is a Latin term meaning "let the buyer beware," implies that the buyer is responsible for examining and assessing the quality and value of a property before proceeding with a purchase. This principle places the onus on the buyer to perform due diligence, meaning they should investigate any potential issues with the property, such as physical condition, legal encumbrances, and market value, rather than relying on the seller to disclose all pertinent information.

By understanding this doctrine, buyers can be more proactive in their property investments, ensuring they are aware of any risks before finalizing a transaction. This concept is foundational in real estate transactions, particularly in jurisdictions that adhere to caveat emptor principles, reinforcing that buyers must take responsibility for their decisions.

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The buyer has no rights in a property transaction

Sellers are not allowed to negotiate prices

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