AgencyIntermediateArizona Exam

The duty of loyalty in Arizona agency primarily means an agent must:

AAlways agree with every decision the client makes and avoid expressing any contrary opinion, even when the client's proposed course of action may be harmful to their interests
BPut the client's interests above those of third parties and the agent's own interestsCorrect
CRemain loyal to the brokerage's financial interests over individual client interests in cases where the brokerage's compensation depends on the transaction closing
DFavor the client's position in all disputes with other parties, including disputes that arise from the client's own breach of the purchase contract or agency agreement

Why Put the client's interests above those of third parties and the agent's own interests Is Correct

Answer B: Put the client's interests above those of third parties and the agent's own interests

The duty of loyalty requires the agent to place the client's interests above all others, including the interests of third parties and the agent's own personal interests. It prohibits self-dealing and conflicts of interest.

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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