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In Arizona, a dual agent must have:

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Question & Answer

Review the question and all answer choices

A

Verbal consent

Verbal consent is legally insufficient in Arizona for dual agency because oral agreements in real estate are generally unenforceable under the Statute of Frauds, and the ADRE specifically requires written documentation to protect all parties and create an auditable compliance record.

B

Written informed consent from both parties

Correct Answer
C

ADRE approval

ADRE approval is not required for individual dual agency transactions β€” the Arizona Department of Real Estate licenses and regulates brokers and agents broadly but does not review or pre-approve specific agency relationship arrangements within individual transactions.

D

No special consent required

Stating that 'no special consent is required' for dual agency in Arizona is dangerously incorrect; proceeding with dual agency without written informed consent from both parties constitutes a violation of Arizona real estate license law and can result in license suspension, revocation, and civil liability.

Why is this correct?

Under Arizona Revised Statutes Β§ 32-2130 and the Arizona Department of Real Estate's (ADRE) implementing rules, a licensee acting as a dual agent must obtain written informed consent from both the buyer and the seller before proceeding with the dual representation. The written consent must explain the nature of dual agency, the limitations on the agent's duties, and the fact that the agent cannot provide undivided loyalty to either party. This requirement mirrors the National Association of Realtors' Code of Ethics Standard of Practice 1-5 and is enforced by ADRE through license discipline proceedings.

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