Arizona License LawIntermediateArizona Exam
Under Arizona law, a licensee's duty to disclose known material facts to a buyer:
AApplies only to facts the licensee has a legal duty to investigate; there is no obligation to disclose facts not within the licensee's constructive knowledge
BExtends to all material facts the licensee knows regardless of whether asked, including facts that may adversely affect the value or desirability of the propertyCorrect
CIs limited to physical conditions of the property; economic conditions such as pending zoning changes or adjacent development are not material facts requiring disclosure
DApplies only after the purchase contract is fully executed, since disclosure obligations cannot arise until there is a binding agreement between the parties
Why Extends to all material facts the licensee knows regardless of whether asked, including facts that may adversely affect the value or desirability of the property Is Correct
Answer B: Extends to all material facts the licensee knows regardless of whether asked, including facts that may adversely affect the value or desirability of the property
Arizona licensees have an affirmative duty to proactively disclose all known material facts—not just respond to questions. This duty exists regardless of whether the buyer asks, and the licensee cannot remain silent about known defects or adverse facts.
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