Agency

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 adverse✓ Correct
BTwo separate agents each acting as fiduciaries creates a 'dual fiduciary' structure
CThe designated broker has dual duties to the brokerage and the public
DTwo different brokerages each claiming fiduciary duties to the same client

Explanation

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.

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