AgencyIntermediateArizona Exam

In Arizona, the duty of disclosure requires an agent to tell a buyer about:

AThe seller's bottom-line price

BThe seller's motivation for selling

CKnown material defects that would affect the buyer's decision or the property's valueCorrect

DThe agent's commission arrangement with the seller

Why Known material defects that would affect the buyer's decision or the property's value Is Correct

Answer C: Known material defects that would affect the buyer's decision or the property's value

An agent must disclose known material facts (defects, conditions) that could affect the buyer's decision or the property's value. The agent does not have to disclose the seller's confidential information like bottom-line price or motivation.

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.