Disclaimer:
This article is provided for general informational purposes only and does not constitute legal advice. Arizona REALTORS® and brokers are encouraged to consult their designated broker or seek guidance from the Arizona REALTORS® Legal Hotline before taking action on any legal, contractual, or agency-related issue. Individual facts and circumstances may vary, and professional legal counsel should be consulted where appropriate.

Introduction

Working with self-represented (formerly “unrepresented”) buyers is becoming increasingly common in Arizona real estate. These transactions raise unique legal, ethical, and practical challenges, particularly in light of recent changes to standard forms and agency disclosure expectations.

This article provides Arizona REALTORS® and brokers with a comprehensive, practical guide to navigating self-represented buyer transactions. It draws on Arizona law, Arizona Department of Real Estate (ADRE) rulings, AAR forms, and case studies to illuminate best practices.

Other States: A Quick Comparison

Arizona’s contract revisions align with national trends. In states like California and Texas, disclosure rules vary, but the pressure for transparency is similar. Some now require buyer-broker compensation disclosure on closing statements. Arizona’s approach, clearer concessions and stricter agency documentation, is designed to offer safer compliance tools for all parties.

In contrast to Arizona’s approach, Colorado recognizes a statutory “Transaction Broker” role, where a licensee may assist both parties in a transaction without representing either in a fiduciary capacity. This allows a Colorado broker to facilitate communication, prepare paperwork, and help close the deal while remaining neutral, so long as neither party has hired them for representation. If a buyer approaches a Colorado listing agent without their own broker, the agent can simply operate as a Transaction Broker for both.

Arizona does not permit this model. Here, you’re either an agent or you’re not.  There is no statutory role that permits facilitation without representation. A listing agent in Arizona cannot default to neutrality; they must maintain loyalty to the seller unless both parties affirmatively consent to dual agency in writing.

Implied Agency: How Your Actions Can Create an Agency Relationship

In Arizona, a real estate agency relationship doesn’t have to be in writing to exist. It can be implied through conduct, meaning your actions alone could unintentionally create a legal duty to a buyer or seller.

Arizona courts have made it clear:

“An implied agency must be based on facts… that lead to the reasonable conclusion that mutual assent exists.”

In other words, if a buyer reasonably believes you’re acting on their behalf, and you don’t correct that impression, you could be considered their agent, even without a contract.

Real-World Examples That Can Create Implied Agency

Agents often cross into dangerous territory without realizing it. For example:

• Repeatedly showing homes to a self-represented buyer
• Running custom MLS searches for them
• Giving strategic advice on how to write an offer

These actions go beyond simple customer service. While merely providing information or property access isn’t agency by itself, consistent help without clarification can imply representation.

As one broker put it:

“Just sitting there looking up properties for an unrepresented buyer implies agency.”

What Actually Matters: Conduct, Not Compensation

A common myth is that whoever pays the commission determines agency. That’s not true in Arizona.

• A listing broker can be paid entirely by the seller and still owe fiduciary duties to the buyer if their actions created an implied agency.
• What matters is whether your behavior and the buyer’s understanding suggest you were acting on their behalf.

💼 Legal Note: Arizona case law (e.g., Hayward v. Graham) emphasizes that implied agency arises only when the agent’s actions lead the buyer to reasonably rely on them. Once created, this agency imposes fiduciary duties like loyalty and care, which can conflict with your duties to the seller and create liability.

What Arizona Courts Have Said

Two cases show why this issue matters:

• Hayward v. Graham
  The Arizona Supreme Court emphasized that implied agency exists when facts clearly show both parties intended to create that relationship. The buyer must have reasonably relied on the agent’s conduct.
• Buffington v. Haas
  The court held that if no agency relationship exists, the broker has no duty to advise the other party about contract terms. A listing agent isn’t obligated to tell a buyer if they’re overpaying or agreeing to bad terms, but only if they’re not acting as that buyer’s agent.

✅ If your conduct stays neutral, you’re shielded.
❌ If your conduct implies representation, that legal shield disappears.

✅ Bottom Line

Implied agency isn’t created automatically by helpful actions, but your conduct can lead to it if a buyer reasonably believes you are acting on their behalf, and you fail to clarify otherwise.

Under Hayward v. Graham, Arizona courts require evidence of mutual intent or reasonable reliance to find implied agency. Still, common behaviors like advising on offer terms, repeatedly showing homes, or tailoring MLS searches can support that claim if left unchecked.

Unless you’ve clearly disclosed that you represent only the seller, and your conduct stays neutral and non-advisory, you risk creating unintended legal duties to the buyer.

That’s why tools like the READE (Real Estate Agency Disclosure and Election) and UBD (Unrepresented Buyer Disclosure) forms are critical. They formally document your role and create a paper trail showing the buyer was informed and proceeding without representation.

These forms are your legal seatbelt, but like any seatbelt, they only work if used properly and combined with careful driving.

Why Implied Agency Matters

Even if created unintentionally, implied agency comes with real legal consequences. If a listing agent’s actions lead a buyer to reasonably believe they’re being represented, the agent may owe that buyer fiduciary duties; like loyalty, disclosure, and reasonable care.

This creates a serious problem: those duties can directly conflict with the agent’s obligations to the seller. That’s where undisclosed dual agency can arise, a violation that carries major legal and ethical risk.

The Practical Takeaway

Arizona agents must be vigilant when working with unrepresented buyers. Always ask yourself:

“Could this buyer think I’m acting as their agent right now?”

If the answer is yes, or even maybe, pause, clarify in writing that you represent the seller only, and avoid giving advice or personalized guidance. Your conduct matters just as much as your forms.

Use the Right Forms to Protect Yourself

To reduce the risk of implied agency and later liability, AAR provides two critical forms:

• Unrepresented Buyer Disclosure (aka “Consent to Unrepresented Buyer”): Clearly states the agent does not represent the buyer.
• READE Form (Real Estate Agency Disclosure and Election): Satisfies legal disclosure requirements and documents who you do (and don’t) represent.

Used together, these forms offer strong protection, but only when your conduct aligns with them. Think of them as your legal seatbelt: they work best when you stay in your lane.  Agents should not be lulled into a false sense of security by a signed form. The form’s protective effect is only as strong as the agent’s adherence to it. Its practical limits become clear if the agent’s subsequent conduct contradicts the written disclosure.

Unrepresented Buyer Disclosure: What It Is and Why It Matters

When a buyer doesn’t have their own agent, the “Unrepresented Buyer Disclosure” (also known as the “Consent to Unrepresented Buyer”) is your first and best tool to avoid confusion and protect yourself.

What the Form Does:

• Clearly states that you (the listing agent) represent the seller only.
• Warns the buyer that you won’t give advice, negotiate for them, or act in their interest.
• Advises them not to share confidential info—they’re not your client.
• Requires the buyer to acknowledge, in writing, that they understand these boundaries.

🛡️ Why it matters:
If a dispute arises, this signed form is strong evidence that the buyer knowingly waived representation. It helps you defend against claims of implied agency.

Best Practices for Using the Form

• When to use it: Present it at the first substantive contact, or as soon as the buyer shows serious interest.
• What to say:

“This isn’t a contract. It just confirms that I represent the seller, not you, and that you’re proceeding without your own agent.”

• Extra protection: Even a quick email before a showing (“Just to confirm, I represent the seller only”) helps establish the paper trail.

Timing Tip for Disclosure Forms

📌 Best Practice: Present the Unrepresented Buyer Disclosure and READE at first substantive contact or immediately when the buyer shows interest. This minimizes the risk of implied agency forming before disclosures are in place.

A Warning About Conduct

The form only works if your behavior matches your disclosure. If you:

• Suggest an offer price,
• Discuss negotiation strategy, or
• Give investment advice…

…you may accidentally create an implied agency, undermining the form completely.

💡 Tip: Stick to neutral, ministerial actions (like unlocking a door), not advisory ones.

If a Buyer Refuses to Sign

Some buyers may hesitate. If so:

• Calmly explain:

“This form just clarifies who I represent.  It protects both of us.”

• If they still refuse, document the conversation in writing (email or text), confirming your role and recommending they seek independent advice.

Used correctly, the Unrepresented Buyer Disclosure is a powerful shield. But it only works if your actions don’t blur the lines. Pair it with clear communication and stick to your lane as the seller’s agent.

Real Estate Agency Disclosure and Election (READE)

Unlike some states, Arizona doesn’t have a statutory agency disclosure form. Instead, AAR provides the READE form (updated November 2024) to clearly document who each broker represents in a transaction.

Key Points:

• READE is not a contract or employment agreement.
• It explains agency types (sole or dual) and confirms which party the broker represents.
• It helps prevent undisclosed dual agency and satisfies disclosure requirements under A.A.C. R4-28-1101.

Using READE in Self-Represented Buyer Deals

In transactions with only one broker (the listing broker), you still need two signed READE forms:

• Seller’s READE: Business as usual, the broker represents the seller.
• Buyer’s READE: The same form is used, but it clearly states the broker represents the seller. The buyer signs to acknowledge they understand they are not represented.

This complements the “Unrepresented Buyer Disclosure”, reinforcing both consumer awareness and regulatory compliance.

Clarifying the Form’s Purpose

Having a self-represented buyer sign READE can feel awkward.  It uses language like “the broker represents you,” which doesn’t apply. Be transparent:

“This isn’t a contract, it’s just a disclosure to clarify that I represent the seller, not you.”

Most buyers will understand once it’s explained clearly. Signing READE ensures there’s no confusion about agency roles, which protects everyone involved.

Why It Matters

• Legal compliance: Fulfills ADRE’s written disclosure requirement.
• Risk mitigation: Helps defend against later claims of implied agency or misrepresentation.
• Best practice: Use it with the Unrepresented Buyer Disclosure for full protection.

Again, think of READE as your seatbelt. It won’t prevent every risk, but used properly, it provides legal safety and clarity when working with unrepresented buyers.

February 2026 Contract Revisions: Buyer Broker Identification & Commission Transparency

One of the most impactful developments in Arizona real estate is the February 2026 release of revised standard forms, especially the Residential Resale Real Estate Purchase Contract. These changes were the culmination of industry trends pushing for greater transparency in brokerage relationships and compensation. Let’s break down the key revisions and the challenges they present when dealing with an unrepresented buyer.

Identifying the Buyer’s Broker (or Lack Thereof)

The 2026 AAR purchase contract introduced a key clarification: if the buyer has no broker, the buyer’s broker section must be left blank.

Historically, agents used various workarounds: writing “None,” “N/A,” or even mistakenly inserting the buyer’s name or repeating the listing broker. These approaches led to confusion and, at times, legal risk by implying:

• An unlicensed person was acting as a broker
• Dual agency existed when it did not

The updated contract now ties naming a buyer’s broker to two affirmations:

1. That the named broker actually represents the buyer
2. That they will receive compensation from the transaction

This eliminates ambiguity. If the buyer is self-represented, do not list anyone, especially not the listing agent, unless true dual agency has been disclosed and agreed upon.

✅ Best Practice: Leave the buyer’s broker section blank in self-represented transactions.
❌ Never list an unlicensed buyer or duplicate the listing broker unless dual agency applies.

Title Company Confusion

While the February 2026 contract clarifies agency roles, it has introduced practical confusion, especially for title companies.

When the buyer’s brokerage line is left blank, some escrow officers who are accustomed to seeing two brokers may ask:

“Who’s the buyer’s agent?” or “Where should we put the co-broke commission?”

Answer: There is no buyer’s agent. No co-broke is owed. The listing broker will be paid per the listing agreement, often the full commission if there’s no split.

Common Escrow Missteps (and How to Avoid Them)

❌ Mistake: Title fills in buyer’s broker info anyway
✅ Fix: Explain the blank is intentional. Provide written commission instructions or a copy of the listing agreement showing how the listing side is compensated in a no-broker scenario.

❌ Mistake: Escrow labels listing agent as a “dual agent”
✅ Fix: Clarify that without written agency and dual agency disclosure, this label is incorrect, and potentially risky.

❌ Mistake: Escrow issues a “commission credit” to the buyer
⚠️ Risk: That’s illegal under Arizona law (A.R.S. §32-2155(A)) if the buyer is not a licensed broker.

✅ Fix: Any financial credit to the buyer must be structured as a seller concession (e.g., “$X toward buyer’s closing costs”), not labeled as commission or a referral fee.

Language Tips and Best Practices

• You may write “No Agent (Buyer Self-Represented)” in the buyer’s broker field to avoid ambiguity.
• Avoid wording that implies the buyer is a licensed professional.
• Remind escrow that under the 2026 contract, only named brokers are authorized for compensation.  Buyers cannot receive commission.

Pro Tip: Proactively educate the escrow officer with a brief written note or instruction sheet. Don’t assume they’re familiar with the new rules or ADRE standards.

Escrow Communication Checklist

To prevent confusion at closing, proactively provide the escrow officer with:

• Copy of the signed listing agreement
• Unrepresented Buyer Disclosure
• Statement confirming no buyer broker exists
• Clarification that the buyer-side broker field is blank by design

📝 Escrow Pushback Example: “We can’t leave the buyer’s broker field blank.”
Suggested response: “Per the 2026 contract, if there’s no buyer’s broker, this field stays blank. We’ve disclosed all parties and provided written commission instructions.”

What to Say to Escrow:

“Buyer is self-represented. There is no cooperating brokerage. Commission should be disbursed to [listing brokerage] as outlined in the listing agreement.  If a seller concession exists, please show it as a general credit, not as a commission to a buyer or non-agent.”

Seller Concessions and Commission Transparency

One of the most significant 2026 contract changes, with national implications, is how seller concessions and broker compensation disclosures are handled. Prompted by industry-wide calls for transparency and recent commission-related litigation, these updates reshape how concessions can support buyer-broker fees.

Seller Concessions Can Now Cover Broker Fees

Arizona’s updated contracts now make it crystal clear: seller concessions can be used to help pay a buyer’s broker, not just closing costs, prepaids, or rate buy-downs.

🧾 Contract Tip: Never reference “commission” in the concession line item. Stick to compliant terms like “closing costs, prepaids, or allowable buyer expenses” to keep escrow and lenders comfortable.

Here’s how it works:
If a buyer has an agreement to pay their agent a commission, the seller can agree to cover part (or all) of that amount through a standard seller credit. This was already happening informally as “commission credits,” but the 2026 contract now explicitly allows it.

This update brings Arizona’s approach in line with NAR guidance and keeps the practice RESPA-compliant, as long as it’s clearly disclosed and agreed upon in the contract.

Why It Still Matters with Unrepresented Buyers

Even without a buyer’s agent, the update affects negotiations. For example:

• A listing offers a 3% co-broke in MLS.
• An unrepresented buyer makes an offer.
• The seller may retain the 3% or agree to apply some of it as a concession to the buyer.

Under the 2026 rules, this is allowed as long as it’s structured as a general seller credit, not earmarked specifically for broker fees.

Compliance Note:
The concession must be flexible. You can say:

“$10,000 toward buyer’s closing costs.”

You cannot say:

“$10,000 to pay buyer’s agent commission.”

This distinction protects against RESPA violations and ensures the concession is treated as a buyer benefit, not a disguised commission payment.

Example: Acceptable vs. Risky Seller Concession Language

• ✅ Acceptable: “Seller agrees to credit $7,000 toward Buyer’s closing costs, prepaids, or other allowable fees.”
• ❌ Not Acceptable: “Seller agrees to pay $7,000 toward Buyer’s agent commission.”

Use broad language that complies with RESPA and lender rules. Avoid conditioning the concession on commission usage.

Written Consent for Commission from Both Sides

Arizona law and the REALTOR® Code of Ethics require written consent from both parties if a broker is being compensated by both buyer and seller. In most co-broke scenarios, this isn’t an issue: the listing broker is paid by the seller, and the buyer’s broker is also paid from the seller’s funds via the MLS offer. That’s not considered “dual compensation.”

However, complications arise in edge cases, such as when:

• A buyer directly pays their broker on top of the seller-paid commission
• A listing broker receives a bonus from the buyer
• A seller concession covers buyer-agent fees

In these cases, the funds come from opposite parties, raising potential dual-compensation concerns.

New Contract Language Covers This

The 2026 Residential Resale Purchase Contract directly addresses this by requiring written consent from both buyer and seller when a concession will fund the buyer’s broker.

Example contract language:
“Buyer and Seller acknowledge and consent that the Seller’s concession may be used to pay for buyer’s broker fees.”

This built-in language meets the disclosure and consent requirement, eliminating ambiguity.

New AAR Form for Out-of-Escrow Scenarios

In August 2024, AAR also introduced a stand-alone Seller Compensation Consent form. It’s used in rare cases where a seller pays the buyer’s broker directly, outside of escrow. The 2026 contract now covers this within the concession structure, but the form may still be useful when escrow isn’t involved.

When (Not) to Use Dual Agency

Dual agency might seem like a workaround when a buyer is unrepresented, but it carries legal and ethical risks:

• Requires written informed consent from both parties
• Increases liability and disclosure obligations
• May confuse buyers about who represents them

Only consider dual agency if:

• The buyer explicitly requests it
• You provide a clear written explanation of risks
• You obtain signed READE and dual agency consent before any contract is signed

⚠️ Avoid defaulting to dual agency just to solve a paperwork issue. Without the right documentation and intent, it exposes you to serious liability.

⚠️ Risk Reminder: Dual agency can’t be used retroactively to cover mistakes or paperwork gaps. Without proper disclosure and written consent before contract acceptance, it could be considered unethical or even fraudulent.

Practical Impact in Self-Represented Buyer Deals

In a typical self-represented buyer transaction:

• You leave the buyer’s broker section blank
• No consent form is needed, since no second broker is involved

But consider a scenario where the listing broker reduces their own commission by 2% and applies that toward the buyer’s closing costs as a concession. That’s permissible under the new rules, so long as it’s documented properly.

How to handle it:

• Listing broker and seller amend the listing agreement (if needed) to reflect the adjusted commission
• The purchase contract simply includes a seller concession of “$X” to the buyer
• Don’t reference broker motivations in the contract (e.g., avoid: “because no buyer agent”)

The buyer uses the concession for loan costs, prepaids, or a price reduction. Since the buyer isn’t paying any broker, and the listing broker is paid solely by the seller, there’s no dual compensation issue.

Final Note on Rebates and Compliance

If a listing broker decides to credit part of their commission back to the buyer, it should be labeled as a seller concession or price reduction, not a “rebate.” This avoids triggering lender disclosure requirements or compliance concerns.

While Arizona law permits brokers to rebate commissions to principals, all parties, and the lender, must be informed. The cleanest way to handle it is through the contract as a clearly defined concession.

✅ One broker.
✅ One commission.
✅ Transparent documentation.

💡 Note: Arizona allows brokers to rebate commissions to buyers, but only if disclosed to all parties and the lender (if applicable). For maximum compliance, structure it as a seller concession in the contract, not a separate side payment.

Commission Disclosure on the Horizon?

AAR and industry leaders have emphasized: all compensation is negotiable and must now be documented in writing. The February 2026 contract changes reflect this shift toward transparency, aligning Arizona with national trends.  Some states and MLSs already require buyer-agent commissions to be disclosed to buyers or included on the closing statement by default.

As a listing agent working with an unrepresented buyer, be prepared for candid conversations. If a buyer asks, “Since I don’t have an agent, is the seller saving money?” a clear and compliant response might be:

“The property was listed offering a 3% commission to a buyer’s agent. With no agent involved, that 3% isn’t automatically paid. It’s the seller’s money, and how it’s handled is negotiable. If you’re seeking a credit or price adjustment, include it in the offer as a concession, the seller will decide. Otherwise, under my agreement, I may receive the full commission.”

This level of transparency avoids future misunderstandings. What you want to avoid is a buyer later discovering that the listing broker received the full commission and feeling misled: “I thought the price would be lower since I had no agent.”

Best Practices:

• Leave the buyer broker field blank or marked “None” if the buyer is self-represented.
• Never insert false information to satisfy a form or administrative preference.
• If a concession is granted, structure it as a general seller credit—not as “commission.”
• Ensure escrow understands the deal structure to avoid mislabeling fees.
• Provide written broker instructions for commission disbursement.
• Use the Unrepresented Buyer Disclosure and READE form to document roles.

These updated forms and contract provisions give you a safer framework. As AAR’s general counsel noted, they “give us more safe harbors because they spell out previously gray areas.” Use them as intended and stay proactive in your communication.

Title Company Pressures: Mischaracterizations and Form Issues

In transactions with self-represented buyers, title companies, while neutral parties, can unintentionally create legal issues. Their systems often assume both sides have agents, and when only one agent appears, they may apply pressure to “fill the gap” inappropriately.  Title companies are prone to choose administratively comfortable solutions that do not always align well with the contract language, agency law, or even reality

“Title companies are prone to choose administratively comfortable solutions that do not always align well with the contract language, agency law, or even reality”

Common Missteps and Legal Risks

• Pushing for a second signature:
  A title officer might say, “We need something signed by the buyer’s agent.” If there is none, they may suggest the listing agent sign again on behalf of the buyer.
  👉 This is not acceptable. It could falsely imply dual agency, violating agency law and ethics if proper disclosures and consents weren’t in place.
• Filling blanks for convenience:
  Title may insist every line be completed, but doing so inaccurately (e.g., mislabeling a listing agent or buyer as a broker) introduces legal exposure—especially if the buyer later claims they believed they were represented.

Handling Commission Payout Confusion

If the buyer broker line is blank and only one commission appears on the closing statement, title might ask:

“What do we do with the 3% co-broke?”

They may suggest:

• Reducing the price
• Giving it to the buyer as a “courtesy credit”

🚫 That’s not their call.
If the listing agreement entitles the listing broker to the full commission (as most do when no co-broke is paid), that’s what escrow must honor, unless the seller and broker have amended it.

✅ Best Practice:
Provide escrow with a clear commission instruction letter (e.g., “Listing broker to be paid X%, no cooperating broker involved”).

Avoiding Missteps with Buyer Credits

If the seller agrees to credit part of the saved commission to the buyer:

• It must be documented in the contract or an addendum.
• It must be labeled as a seller concession—not a post-closing gift or a “rebate.”

Otherwise, escrow may balk or worry about violating RESPA or Arizona law. A direct broker-to-buyer payment outside escrow could resemble a prohibited referral fee.

✅ Keep escrow compliant and comfortable:
Spell out any unusual arrangement in the purchase contract itself, not after the fact.

🚫 Never allow administrative pressure to override accurate representation. Title officers may not understand license law.  Your duty is to your client and to compliance.

What can you do as an agent?

Start by communicating early with the escrow officer. Let them know:

“The buyer is self-represented. I’ll provide the Unrepresented Buyer Disclosure. The buyer-side commission field is intentionally blank, per AAR guidelines. The listing brokerage is to be paid per the listing agreement (% of price), and this should be shown on the Closing Disclosure as a commission to [Listing Brokerage Name]. No cooperating brokerage is involved.”

If there’s a seller credit, clarify:

“There is a $___ seller concession per contract line __. Please list it as a general seller credit on the statement.”

This reduces the risk of escrow improvising with noncompliant workarounds.

If escrow requests a form that doesn’t quite fit, such as a mutual commission instruction or affidavit, review it closely. If it simply affirms “buyer did not utilize a broker,” that’s helpful and can protect against later false claims. But if it implies the listing broker acted for the buyer, don’t sign it as-is. Instead, consult your broker. You may need to amend the form or replace it with a clarification letter.

Never misstate agency relationships to make a form “fit.” Your duty is to your client, not to administrative ease.

Finally, remember title companies are not experts in license law or REALTOR® ethics. An escrow officer might suggest, “Why not just double-end it?” without understanding that dual agency requires informed written consent before contract acceptance. Retroactively executing a Consent to Limited Representation is unethical and could constitute fraud.

When in doubt, consult your broker. Escrow pressure is common, but it should never override legal or ethical obligations.

Conclusion and Resources

Transactions involving self-represented buyers can be successful when navigated with precision. The key is clarity of roles, documents, and communication.

Your Obligations:

• Disclose clearly
• Avoid conduct inconsistent with seller representation
• Document all steps
• Educate your clients and manage expectations

Resources:

• AAR Legal Hotline
• Updated READE and Unrepresented Buyer Disclosure forms
• AAR’s Legal Articles on Seller-Initiated Offers and Buyer-Side Concessions

Final Note: When in doubt, consult your broker. If further clarification is needed, contact ADRE or legal counsel. By handling these transactions carefully, REALTORS® serve their clients effectively while minimizing personal risk.

✅ Top 5 Must-Dos When Working With Self-Represented Buyers

1. Disclose Agency Early and In Writing
   • Use the READE (Buyer) form to document that you represent the seller.
   • Provide the Unrepresented Buyer Disclosure (UBD) to clarify that the buyer has no representation.
2. Avoid Conduct That Implies Representation
   • Don’t advise on pricing, offer strategy, or legal interpretations.
   • Stick to ministerial tasks only (e.g., scheduling, unlocking doors).
3. Use Seller-Initiated Offer Format
   • If the buyer has no agent, the seller (via listing agent) should generate the offer.
   • Include the “Seller-Initiated Offer” clause in the Additional Clause Addendum.
4. Structure Concessions Properly
   • If the seller offers a concession, label it clearly as a general credit (e.g., “toward buyer’s closing costs”).
   • Do not reference commissions or broker fees if the buyer is unrepresented.
5. Proactively Communicate With Escrow
   • Let title know the buyer is self-represented.
   • Provide written commission instructions.
   • Make sure no one fills in a buyer’s broker field incorrectly.

📚 References

Arizona Law and Regulations

• A.R.S. § 32-2155(A): Prohibits payment of real estate compensation to unlicensed individuals.
• A.A.C. R4-28-1101: Requires disclosure in writing of agency relationships in real estate transactions.
• Hayward v. Graham, 129 Ariz. 99 (1981): Clarifies when implied agency arises based on conduct and reasonable reliance.
• Buffington v. Haas, 124 Ariz. 293 (1979): Establishes that non-agents owe no fiduciary duties to unrepresented parties.

Arizona REALTORS® (AAR) Forms and Guidance

• Residential Resale Real Estate Purchase Contract (Rev. 02/2026)
• Unrepresented Buyer Disclosure (UBD) Rev. 11/2024
• Real Estate Agency Disclosure and Election (READE Buyer and Seller versions) Rev. 11/2024
• Unrepresented Seller Compensation Agreement Rev. 11/2024
• Additional Clause Addendum Rev. 11/2025
• AAR Legal Hotline Summaries and Risk Management Resources (2024–2026)

National Guidance

• National Association of REALTORS® (NAR) Guidelines on Buyer Broker Compensation
• Real Estate Settlement Procedures Act (RESPA), 12 U.S.C. §§ 2601–2617

Other States (Brief Comparisons)

• California Department of Real Estate: Agency Disclosure Requirements (Form AD)
• Texas Real Estate Commission (TREC): Information About Brokerage Services (IABS)

This article was prepared for the Central Arizona Association of REALTORS® by Dennis R. Riccio, CAAR President. It is intended for informational use only and does not constitute legal advice.