Ace the Arizona Real Estate Exam 2025 – Unlock Your Property Dreams!

The principle that governs the ethical responsibility of agents in real estate transactions is full disclosure. This principle ensures that agents provide all pertinent information related to the property and the transaction to their clients and any other parties involved. Full disclosure promotes transparency and helps to build trust in the agent-client relationship, as well as among other stakeholders in the transaction. Agents have a legal and ethical obligation to disclose any material facts that could affect a buyer’s decision, which includes issues such as property defects, liens, and neighborhood factors.

While due diligence involves the careful investigation and consideration of all aspects of a property before making a decision, and confidentiality refers to the obligation to protect a client’s private information, neither of these principles alone encapsulates the entirety of an agent’s ethical responsibilities. Agency obligation emphasizes the duties an agent owes to their client, such as loyalty and accountability, but full disclosure specifically addresses the necessary communication of important information that can impact the transaction's outcome.