Arizona License LawIntermediateArizona Exam
Under Arizona law, a licensee who receives compensation from both the buyer and the seller in the same transaction must:
AReturn the compensation to one of the parties
BObtain written informed consent from both parties before the transaction closesCorrect
CReport the dual compensation to ADRE within 5 days
DLimit their total compensation to 3% of the sale price
Why Obtain written informed consent from both parties before the transaction closes Is Correct
Answer B: Obtain written informed consent from both parties before the transaction closes
Receiving compensation from both buyer and seller is permissible in Arizona only with written informed consent from both parties prior to closing. This is closely related to the limited dual representation disclosure requirement.
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Key Terms to Know
Dual Agency
A situation where a single real estate agent or brokerage represents both the buyer and the seller in the same transaction.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Option ContractA contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
Closing CostsFees and expenses paid by the buyer and/or seller at the closing of a real estate transaction, in addition to the property's purchase price.
State-Specific Concepts
Disclosure RequirementsDRE Regulation
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