AgencyIntermediateArizona Exam

An Arizona buyer's agent who is also a licensed mortgage broker and originates the buyer's loan without disclosure is:

AProviding a valuable one-stop-shop service
BViolating RESPA and the duty of loyalty through an undisclosed conflict of interestCorrect
CActing within their rights as a dual licensee
DPermitted if the buyer signs a general authorization

Why Violating RESPA and the duty of loyalty through an undisclosed conflict of interest Is Correct

Answer B: Violating RESPA and the duty of loyalty through an undisclosed conflict of interest

An agent who originates their own buyer's loan has a financial conflict of interest that must be fully disclosed. Failure to disclose violates RESPA's affiliated business arrangement disclosure requirements and the agent's fiduciary duty of loyalty.

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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