AgencyIntermediateArizona Exam

An Arizona licensee acting as a seller's agent who learns that the buyer is financially overextended and may default should:

AShare this information with the seller immediately as it affects the transactionCorrect

BKeep the information confidential since it is the buyer's personal financial information

CReport the buyer's financial situation to the ADRE

DAdvise the buyer to withdraw the offer

Why Share this information with the seller immediately as it affects the transaction Is Correct

Answer A: Share this information with the seller immediately as it affects the transaction

A seller's agent owes fiduciary duties to the seller, including the duty to disclose material facts that could affect the seller's decision. A buyer's potential inability to close is a material fact the seller's agent must disclose to the seller.

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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Key Terms to Know

Seller's Agent (Listing Agent)

A real estate licensee who represents the seller's interests, markets the property, and owes fiduciary duties to the seller.

Fiduciary Duty

The highest legal duty an agent owes to a principal — requiring the agent to act in the principal's best interest above all others.

Buyer's Agent

A real estate licensee who represents the buyer's interests in a transaction, owing fiduciary duties to the buyer.

Agency

A legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.

State-Specific Concepts

DRE Regulation

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