AgencyIntermediateArizona Exam

An Arizona seller's agent learns the property has an unpermitted addition. The agent should:

AKeep this confidential to protect the seller's interests
BDisclose this material fact to buyers because unpermitted work is a known defect affecting value and safetyCorrect
COnly disclose if the buyer asks about permits directly
DContact the city to permit the work before disclosing

Why Disclose this material fact to buyers because unpermitted work is a known defect affecting value and safety Is Correct

Answer B: Disclose this material fact to buyers because unpermitted work is a known defect affecting value and safety

An unpermitted addition is a material defect that can affect property value, safety, insurance coverage, and the ability to obtain financing. An agent who knows of it must disclose this to 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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