AgencyIntermediateArizona Exam

A seller's agent owes the seller all of the following duties EXCEPT:

ALoyalty

BConfidentiality

CObedience to all instructions, including illegal onesCorrect

DReasonable care and diligence

Why Obedience to all instructions, including illegal ones Is Correct

Answer C: Obedience to all instructions, including illegal ones

An agent must obey the client's lawful instructions, but is never required — and may not — follow instructions that are illegal, unethical, or would cause harm to others. The duty of obedience does not extend to unlawful directives.

Exam Tip: Agency

Agency questions are among the most tested on the exam. Focus on the difference between client and customer, and memorize the fiduciary duties (OLD CAR). Watch for questions that try to blur the line between a general agent and a special agent.

Key Agency Terms in This Question

Lien

A financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.

People Also Study

Key Terms to Know

Adjustable-Rate Mortgage (ARM)

A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.

Lien

A financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.

Fiduciary Duty

The highest legal duty an agent owes to a principal — requiring the agent to act in the principal's best interest above all others.

Seller's Agent (Listing Agent)

A real estate licensee who represents the seller's interests, markets the property, and owes fiduciary duties to the seller.

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Agency Law Guide

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