AgencyIntermediateArizona Exam

In Arizona, an agent representing a buyer in a transaction where the buyer's brokerage also holds the listing (in-house sale) MUST:

AAutomatically withdraw from representing the buyer and transition to representing only the seller, since the agent's prior relationship creates an irreconcilable conflict

BObtain written informed consent from both the buyer and seller acknowledging the limited dual representation or designated representationCorrect

CAllow the listing agent to represent both parties without any additional disclosure, since the existing representation agreements cover both parties under Arizona law

DRefer the buyer to an outside broker at no charge, which is required under ADRE rules whenever an agency conflict prevents continued dual representation

Why Obtain written informed consent from both the buyer and seller acknowledging the limited dual representation or designated representation Is Correct

Answer B: Obtain written informed consent from both the buyer and seller acknowledging the limited dual representation or designated representation

In an in-house sale where the same brokerage represents both parties, Arizona requires written informed consent from both buyer and seller — either for limited dual representation or designated representation — disclosing that both clients are represented by the same firm.

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

Agency

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

Lien

A financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.

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Key Terms to Know

Dual Agency

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

Lien

A financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.

Seller's Agent (Listing Agent)

A real estate licensee who represents the seller's interests, markets the property, and owes fiduciary duties to the seller.

Agency

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

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