AgencyIntermediateArizona Exam

An Arizona listing agent discovers a material defect in the property that the seller forgot to disclose. The agent should:

AKeep it confidential because of the duty of loyalty to the seller
BDisclose the defect to prospective buyersCorrect
CRefuse to show the property until the defect is repaired
DOnly disclose if specifically asked about it

Why Disclose the defect to prospective buyers Is Correct

Answer B: Disclose the defect to prospective buyers

Despite owing loyalty to the seller, an agent has an overriding obligation to disclose known material defects to prospective buyers. The duty of loyalty does not extend to concealing material defects.

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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