AgencyIntermediateArizona Exam

In Arizona, a real estate agent who acts for both buyer and seller without disclosure of dual agency and without consent may be liable for:

AOnly an ethics violation under the NAR Code of Ethics, with no civil liability or ADRE disciplinary action available to the aggrieved parties under Arizona law
BBreach of fiduciary duty, fraudulent concealment, and license violations—potentially losing all commissionCorrect
CA mandatory refund of the commission and an automatic 30-day license suspension, which is the prescribed penalty under A.R.S. §32-2153 for undisclosed dual agency
DOnly administrative sanctions from ADRE in the form of a civil penalty; neither breach of contract nor breach of fiduciary duty claims are available under Arizona law

Why Breach of fiduciary duty, fraudulent concealment, and license violations—potentially losing all commission Is Correct

Answer B: Breach of fiduciary duty, fraudulent concealment, and license violations—potentially losing all commission

Undisclosed dual agency is a serious violation. The agent can lose the entire commission (both sides), face license revocation, and be liable for damages to both parties for breach of fiduciary duty and fraudulent concealment.

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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