AgencyIntermediateArizona Exam

Arizona requires that a licensee must disclose their license status when:

AIn all transactions in which they earn a commission from any party, regardless of whether they are acting as an agent or as a principal in the transaction

BOnly in transactions where the licensee is also acting as a designated broker with a direct financial interest in the brokerage entity's transaction revenueCorrect

CWhen they have or will have a personal financial interest in the transaction as a party, investor, or decision-maker

DOnly when representing a buyer who is simultaneously selling property through the same brokerage, creating a dual-interest conflict requiring written disclosure

Why Only in transactions where the licensee is also acting as a designated broker with a direct financial interest in the brokerage entity's transaction revenue Is Correct

Answer B: Only in transactions where the licensee is also acting as a designated broker with a direct financial interest in the brokerage entity's transaction revenue

Arizona law requires licensees to disclose their licensed status whenever they participate in a transaction in a principal capacity—buying, selling, leasing, or investing—not just when acting as an agent.

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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Key Terms to Know

Agency

A legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.

Fiduciary Duty

The highest legal duty an agent owes to a principal — requiring the agent to act in the principal's best interest above all others.

Dual Agency

A situation where a single real estate agent or brokerage represents both the buyer and the seller in the same transaction.

Listing Agreement

A contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.

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Agency Law Guide

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