AgencyIntermediateArizona Exam

In Arizona, a property manager who collects a commission from a contractor for recommending them to a property owner client must:

AReturn the commission to the property owner
BDisclose the arrangement to the property ownerCorrect
CDo nothing since such arrangements are standard in the industry
DSplit the commission with the property owner

Why Disclose the arrangement to the property owner Is Correct

Answer B: Disclose the arrangement to the property owner

A property manager who receives compensation from a vendor they recommend to their client has a potential conflict of interest. Arizona agents must disclose any compensation received from third parties in connection with their agency relationship.

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.

Key Agency Terms in This Question

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