AgencyIntermediateArizona Exam

An Arizona licensee who earns a referral fee from a home warranty company in connection with a transaction must:

AKeep it confidential from the parties
BDisclose the referral fee to all parties in the transactionCorrect
CRemit it to their broker
DReport it to the ADRE

Why Disclose the referral fee to all parties in the transaction Is Correct

Answer B: Disclose the referral fee to all parties in the transaction

An agent who receives any compensation, including referral fees from home warranty companies or other vendors, must disclose this to all parties in the transaction to avoid undisclosed conflicts of interest.

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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