Arizona Agency Law: ADRE Rules and Disclosure Requirements
Agency relationships, disclosure requirements, and the ADRE Commissioner's authority for the Arizona salesperson exam.
Arizona's agency law has unique features — particularly the imputed knowledge rule and the Commissioner structure — that appear regularly on the state exam.
ADRE Commissioner vs. a Commission
Unlike Florida (FREC), Texas (TREC), or Georgia (GREC), Arizona's real estate oversight is handled by a single Commissioner — not a multi-member commission. The Commissioner is appointed by the Governor and can be removed by the Governor. The Commissioner has broad authority to: - Investigate complaints - Issue subpoenas - Revoke, suspend, or deny licenses - Issue civil penalties up to $1,000 per violation
Agency Relationships
Arizona recognizes: seller's agent, buyer's agent, dual agent (with written consent from both parties).
Written disclosure: Arizona requires written disclosure of the agency relationship before the client signs an agency agreement. Unlike some states, Arizona's written agency disclosure requirement is specific and enforceable.
Imputed Knowledge Rule
A key Arizona concept: knowledge is imputed from the salesperson to the broker. This means: - If a salesperson learns a material fact during the course of their duties (e.g., the seller mentions the roof leaks) - That knowledge is legally attributed to the broker - The broker can be disciplined or held liable for the salesperson's failure to disclose
This makes supervision of salespersons critically important in Arizona.
Agency Coupled with an Interest
In Arizona, an agency coupled with an interest is irrevocable. If the agent has a financial interest in the subject matter of the agency, the principal cannot revoke the agency. This protects agents who have invested time or money in the transaction.
Common Exam Questions
Q: An Arizona salesperson learns from a seller that the property has water damage. The salesperson does not tell the buyer. Who can be held responsible? A: Both the salesperson and the broker — due to Arizona's imputed knowledge rule, the broker is held to know what the salesperson knows.
Q: The Arizona Department of Real Estate is administered by: A: The Commissioner of Real Estate — a single official appointed by the Governor, not a multi-member commission.
[Practice Arizona agency questions at CARealestate.com/states/arizona](https://carealestate.com/states/arizona)
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