AgencyIntermediateArizona Exam

Under Arizona law, a buyer's broker who receives compensation from the seller or listing broker:

AMust immediately refuse the compensation as it creates an undisclosed dual agency
BMay accept the compensation provided the arrangement is disclosed to the buyer and consented toCorrect
CAutomatically becomes a dual agent requiring a separate written agreement
DMust rebate the compensation to the buyer

Why May accept the compensation provided the arrangement is disclosed to the buyer and consented to Is Correct

Answer B: May accept the compensation provided the arrangement is disclosed to the buyer and consented to

In Arizona, a buyer's broker may accept compensation from the seller or through the listing broker if the arrangement is fully disclosed to the buyer and the buyer consents. Transparency is the key requirement—the agency relationship and compensation source must both be clear.

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

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