AgencyIntermediateArizona Exam

An Arizona listing agent learns from the seller that the home's roof has leaked for years but has been cosmetically patched. The agent shows the home to a buyer without disclosing the roof history. This is MOST likely a violation of the agent's duty of:

ALoyalty to the seller
BDisclosure of known material facts to the buyerCorrect
CObedience to the seller's instructions
DAccounting for trust funds

Why Disclosure of known material facts to the buyer Is Correct

Answer B: Disclosure of known material facts to the buyer

A known latent defect such as a chronic roof leak is a material fact. Even as the seller's agent, the listing agent is obligated to disclose known material facts to all parties, including prospective buyers.

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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