Arizona Real Estate License Agency Relationships and Duties Questions and Answers

Question 1

An Arizona real estate agent represents a seller.
A potential buyer, who is not represented by an agent, tells the seller's agent confidential information about their negotiating position.
Which of the following statements is TRUE regarding the agent's duty?

Accepted Answer

The agent must disclose the information to their seller client because their primary fiduciary duty is to their client.

Answer

The agent must treat the unrepresented buyer as a customer and owes them the duty of fair and honest dealing, but not confidentiality.

Answer

The agent must keep the information confidential as it was shared in the context of a real estate transaction.

Answer

The agent has an implied agency relationship with the buyer and must protect their confidential information.

Question 2

A licensee in Arizona enters into a buyer-broker agreement with a client. This action creates which type of agency relationship?

Accepted Answer

Special agency

Answer

Implied agency

Answer

Dual agency

Answer

General agency

Question 3

Which of the following actions could create an implied agency relationship in Arizona?

Accepted Answer

A licensee consistently provides a prospective buyer with advice, negotiates on their behalf, and shares confidential opinions without a written agreement.

Answer

A prospective buyer signs an exclusive buyer-broker agreement with a licensee.

Answer

A licensee provides a seller with a comparative market analysis (CMA) with a signed listing agreement.

Answer

A person walks into an open house and has a general conversation with the listing agent about the property's features.

Question 4

In Arizona, a broker is representing both the buyer and the seller in the same transaction. This is known as dual agency. For this to be legal, what is required?

Accepted Answer

Informed, written consent from both the buyer and the seller.

Answer

Verbal consent from either the buyer or the seller.

Answer

Written disclosure to the Arizona Department of Real Estate.

Answer

A reduced commission rate for both parties.

Question 5

A listing agreement in Arizona is terminated because the property is destroyed in a fire. This is an example of termination by:

Accepted Answer

Operation of law

Answer

Mutual agreement

Answer

Revocation by the principal

Answer

Fulfillment of purpose

Question 6

An Arizona real estate salesperson owes fiduciary duties to their client. Which of the following is NOT considered a fiduciary duty?

Accepted Answer

Fairness

Answer

Loyalty

Answer

Disclosure

Answer

Confidentiality