AgencyIntermediateArizona Exam

An Arizona buyer's agent who is offered a bonus by the listing broker for selling a specific property should:

AAccept the bonus without disclosure since it is offered by the listing broker
BDecline all bonuses from listing brokers as a matter of ethics
CDisclose the bonus to the buyer client before or during negotiationsCorrect
DAccept the bonus only if it is less than 1% of the sale price

Why Disclose the bonus to the buyer client before or during negotiations Is Correct

Answer C: Disclose the bonus to the buyer client before or during negotiations

Any additional compensation received by a buyer's agent from the seller or listing broker must be disclosed to the buyer client. Failing to disclose creates a conflict of interest and violates the 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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