ContractsIntermediateArizona Exam

An Arizona real estate licensee who is also a party to a transaction (buying or selling their own property) must disclose their licensed status:

AOnly if the property is commercial

BIn writing to all other parties in the transactionCorrect

COnly after the offer is accepted

DOnly to the other party's agent, not to the other party directly

Why In writing to all other parties in the transaction Is Correct

Answer B: In writing to all other parties in the transaction

Arizona law requires licensees who are principals in a transaction to disclose in writing that they hold a real estate license, ensuring the other party understands they may be dealing with a real estate professional.

Exam Tip: Contracts

Contract questions frequently test the essential elements required for a valid contract. Remember: competent parties, mutual consent, lawful object, and sufficient consideration. Watch for void vs. voidable distinctions.

People Also Study

Key Terms to Know

Right of First Refusal

A contractual right giving a party the opportunity to match any offer received before the owner can accept it from a third party.

Earnest Money

A deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.

Contingency

A condition in a purchase contract that must be satisfied before the sale can proceed to closing.

Purchase Agreement

A legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.

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Real Estate Contracts Guide

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