AgencyIntermediateArizona Exam

An Arizona licensee who refers a client to a home inspector they have a financial interest in without disclosure is violating the duty of:

AObedience
BReasonable care
CLoyalty and full disclosureCorrect
DAccounting

Why Loyalty and full disclosure Is Correct

Answer C: Loyalty and full disclosure

An agent with a financial interest in a vendor they recommend must disclose this relationship to avoid a conflict of interest. Failure to disclose violates the fiduciary duties of loyalty and full disclosure.

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.

Key Agency Terms in This Question

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