AgencyIntermediateArizona Exam

An Arizona agent representing a buyer discovers a material defect in a property that the seller has not disclosed. The agent must:

AKeep the information confidential as it benefits the buyer's negotiating position
BDisclose the defect to the buyer but not to the seller or seller's agent
CDisclose the known material defect regardless of who the agent representsCorrect
DWait until the inspection period to disclose the information

Why Disclose the known material defect regardless of who the agent represents Is Correct

Answer C: Disclose the known material defect regardless of who the agent represents

Arizona agents have an affirmative duty to disclose known material facts to all parties regardless of agency relationship. Concealing a material defect exposes the agent to liability and violates ADRE rules.

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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