Kovats Real Estate School Practice Test

When may a New Jersey broker refuse to cooperate with another licensee?

1. When negotiating with an out-of-state buyer

2. If the owner signs a statement directing her not to cooperate

3. When there are multiple offers on a property

4. If the house is overvalued

The correct answer is: If the owner signs a statement directing her not to cooperate

A New Jersey broker may refuse to cooperate with another licensee if the owner has signed a statement specifically directing the broker not to cooperate. This is significant because it highlights the prioritization of the owner's wishes in real estate transactions. When an owner clearly states their preference through a signed directive, the broker is obligated to honor that request. This is an important aspect of maintaining the relationship between the broker and the client, as brokerage practices must align with the client's instructions. In contrast, situations such as negotiating with an out-of-state buyer, dealing with multiple offers, or concerns about property valuation do not warrant a broker's refusal to cooperate. These scenarios are typical aspects of real estate operations and do not inherently justify a broker's unilateral decision to withhold cooperation from another licensee. Thus, the owner’s explicit instructions in writing are the key factor that allows a broker to refuse cooperation.