AgencyIntermediateArizona Exam

An Arizona agent learns that their seller client's property has an unpermitted addition. The agent MUST:

AConceal this information to protect the seller's negotiating position
BDisclose this material fact to prospective buyersCorrect
CRefuse to list the property until the permit is obtained
DOnly disclose if the buyer specifically asks about permits

Why Disclose this material fact to prospective buyers Is Correct

Answer B: Disclose this material fact to prospective buyers

An unpermitted addition is a material fact that could affect the property's value or the buyer's decision. Arizona agents are required to disclose all known material facts regardless of which party they represent.

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.

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