Arizona Agency
Arizona layers specific agency disclosure and representation rules on top of general agency law. This chapter explains how licensees establish and disclose agency relationships in Arizona and the limits on representing more than one party.
Establishing and Disclosing Agency
In Arizona, a licensee must give the consumer a written agency disclosure explaining representation options before the consumer becomes a client, so the consumer can make an informed election. The disclosure clarifies whether the licensee represents the buyer, the seller, or both. Clear, early disclosure protects the consumer and helps the licensee comply with the duties owed under Title 32 and the Commissioner's Rules.
Duties Owed in Arizona
An Arizona agent owes the client fiduciary duties of loyalty, obedience, disclosure, confidentiality, reasonable care, and accounting. The licensee must also deal honestly and fairly with all parties and disclose known material facts about the property to the buyer. Even when representing the seller, the licensee cannot misrepresent or conceal defects, because honesty toward third parties is required by license law.
Dual and Designated Representation
A broker may represent both buyer and seller only with the informed written consent of both parties. In limited dual representation, the broker stays neutral and cannot advocate for one side over the other or disclose confidential information that would harm either principal. A designated broker may assign different associate brokers or salespersons to each party to help manage the conflict while maintaining consent and fairness.