AgencyIntermediateArizona Exam

Under Arizona agency law, when does the listing agent's obligation to present offers to the seller end?

AWhen the property enters escrow and the buyer's deposit clears, since no additional offers can legally be presented without first resolving the pending contract

BWhen the seller instructs them to stop accepting offers, or when the listing expires or is terminatedCorrect

CWhen the listing agent has presented three legitimate offers to the seller, after which the listing agreement is deemed fully performed

DWhen the seller verbally instructs the agent to stop, since Arizona courts have held that verbal instruction is sufficient to terminate the duty to present offers

Why When the seller instructs them to stop accepting offers, or when the listing expires or is terminated Is Correct

Answer B: When the seller instructs them to stop accepting offers, or when the listing expires or is terminated

The obligation to present offers continues until the seller instructs otherwise, the listing expires, or the listing is terminated. Even after a contract is accepted, backup offers should be presented unless the seller has instructed not to.

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.

Listing Agreement

A contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.

Escrow

A neutral third-party arrangement where funds, documents, and instructions are held until all conditions of a real estate transaction are satisfied.

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Key Terms to Know

Agency

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

Listing Agreement

A contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.

Dual Agency

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

Fiduciary Duty

The highest legal duty an agent owes to a principal — requiring the agent to act in the principal's best interest above all others.

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