Agency
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 disclosure✓ Correct
DAccounting
Explanation
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.
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Key Terms to Know
Lien
A financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
AgencyA legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.
Fiduciary DutyThe 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 AgentA real estate licensee who represents the buyer's interests in a transaction, owing fiduciary duties to the buyer.
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