AgencyIntermediateArizona Exam

An Arizona buyer's agent who also works part-time for a mortgage company and refers buyers to that company without disclosure is:

AEngaging in legitimate dual employment
BViolating the duty of loyalty and disclosure by having an undisclosed conflict of interestCorrect
CActing legally since mortgage referrals are unrelated to real estate agency
DRequired only to disclose to the lender, not the buyer

Why Violating the duty of loyalty and disclosure by having an undisclosed conflict of interest Is Correct

Answer B: Violating the duty of loyalty and disclosure by having an undisclosed conflict of interest

An agent with a financial interest in another service (like a mortgage company) used by their client must disclose this conflict of interest. Failure to disclose violates the duties of loyalty and disclosure.

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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