New Jersey Salesperson State Practice Exam 2025 - Free Real Estate Practice Questions and Study Guide

The New Jersey Agency Disclosure Statement is a critical document that must be provided to buyers prior to signing a contract of sale. This statement serves to inform the buyer about the nature of the relationship between them, the real estate agent, and the brokerage. It clarifies whether the agent is representing the buyer, the seller, or both, thereby ensuring transparency in the representation. This disclosure is aligned with New Jersey law, which mandates that agents inform clients of their obligations and responsibilities to avoid any potential conflicts of interest.

Providing this disclosure before the contract is signed gives buyers the necessary information to understand who they are working with and what their rights are as clients. This helps to foster trust and ensures that buyers are well-informed before making a significant financial decision. The other disclosures mentioned, although important, serve different functions or may not be required prior to the signing of a contract of sale, making the Agency Disclosure Statement the correct choice in this context.