Arizona Real Estate License Arizona Real Estate License Agency Relationships and Duties Questions and Answers 2 — Questions and Answers
Question 1: Under Arizona law, what must a real estate agent provide to a prospective buyer at the first substantive contact?
- A written agency disclosure form (Correct answer)
- A copy of the purchase contract
- A comparative market analysis
- A home inspection report
Correct answer: A written agency disclosure form
Arizona requires agents to provide a written agency disclosure at the first substantive contact with a prospective buyer or seller.
Question 2: In Arizona, a dual agency arrangement requires which of the following?
- Written consent from both the buyer and the seller (Correct answer)
- Approval from the Arizona Department of Real Estate
- A reduced commission agreement
- Consent from only the seller
Correct answer: Written consent from both the buyer and the seller
Dual agency in Arizona is permitted only when both parties provide informed written consent to the arrangement.
Question 3: Which duty does an Arizona listing agent owe to a prospective buyer who is NOT the agent's client?
- Honesty and fair dealing (Correct answer)
- Full fiduciary loyalty
- Confidentiality of financial position
- Obedience to all instructions
Correct answer: Honesty and fair dealing
Arizona agents owe honesty and fair dealing to all parties, even those they do not represent as clients.
Question 4: An Arizona buyer's agent learns the seller is facing foreclosure. What is the agent's obligation?
- Disclose this information to the buyer client (Correct answer)
- Keep the information confidential for the seller
- Report the foreclosure to the state
- Withdraw from the transaction immediately
Correct answer: Disclose this information to the buyer client
A buyer's agent must disclose material facts that could affect the buyer's decision, including the seller's foreclosure status.
Question 5: What happens if an Arizona real estate agent fails to disclose a known material defect to the buyer?
- The agent may face license disciplinary action and civil liability (Correct answer)
- The transaction is automatically voided by the state
- The seller assumes all liability for the defect
- The buyer loses the right to rescind the contract
Correct answer: The agent may face license disciplinary action and civil liability
Failure to disclose known material defects can result in disciplinary action against the agent's license and potential civil liability.
Question 6: In Arizona, a subagent owes fiduciary duties to which party?
- The principal client of the listing broker (Correct answer)
- The buyer they are showing homes to
- Both the buyer and the seller equally
- The referring broker only
Correct answer: The principal client of the listing broker
A subagent works under the listing broker and therefore owes fiduciary duties to the listing broker's principal client, typically the seller.
Arizona Real Estate License Arizona Real Estate License Agency Relationships and Duties Questions and Answers 2
Under Arizona law, what must a real estate agent provide to a prospective buyer at the first substantive contact?