AgencyIntermediateArizona Exam

In Arizona, which of the following best describes the 'dual fiduciary' problem in dual agency?

AThe agent owes fiduciary duties to both the buyer and the seller simultaneously, creating potential conflicts since the interests of buyer and seller are often adverseCorrect
BBoth the listing agent and buyer's agent owe fiduciary duties to the same designated broker, creating structural conflicts when the agents disagree on strategy
CThe designated broker simultaneously owes fiduciary duties to the brokerage entity and to each individual licensee they supervise, creating oversight conflicts
DTwo cooperating brokerages each assert fiduciary duties to the same buyer, creating competing obligations that can only be resolved by the buyer's written election

Why The agent owes fiduciary duties to both the buyer and the seller simultaneously, creating potential conflicts since the interests of buyer and seller are often adverse Is Correct

Answer A: The agent owes fiduciary duties to both the buyer and the seller simultaneously, creating potential conflicts since the interests of buyer and seller are often adverse

In dual agency, one agent owes the full fiduciary duties to both buyer AND seller—two parties whose interests conflict (seller wants the highest price; buyer wants the lowest). This creates an inherent conflict, which is why disclosure and consent are required.

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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