AgencyIntermediateArizona Exam

An Arizona licensee acting as a 'transaction broker' owes which of the following duties?

AFull fiduciary duties to both the buyer and seller simultaneously, including loyalty and confidentiality

BLimited duties including honesty, accounting, and skill, but not loyalty or confidentialityCorrect

CNo legally recognized duties to either party in the transaction

DFull fiduciary duties exclusively to the buyer

Why Limited duties including honesty, accounting, and skill, but not loyalty or confidentiality Is Correct

Answer B: Limited duties including honesty, accounting, and skill, but not loyalty or confidentiality

A transaction broker (facilitator) in Arizona owes limited duties — honesty, reasonable care and skill, accounting, and disclosure of material facts — but does not owe full fiduciary duties such as loyalty and confidentiality.

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.

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