AgencyIntermediateArizona Exam

An Arizona agent working with a buyer as a buyer's agent discovers the seller's property has an unpermitted addition. The agent should:

AIgnore it since it benefits the buyer to have extra square footage
BDisclose the unpermitted addition to the buyer as a material factCorrect
CDisclose only to the buyer's lender, not the buyer
DKeep it confidential to protect the seller

Why Disclose the unpermitted addition to the buyer as a material fact Is Correct

Answer B: Disclose the unpermitted addition to the buyer as a material fact

An unpermitted addition is a material fact that could affect the property's value, insurability, and the buyer's ability to finance or resell. The buyer's agent must disclose this known material fact to the buyer.

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

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