Arizona Article 26 requires licensees to represent one or both parties when writing real estate contracts

Arizona Article 26 requires licensees to act as a broker or salesperson representing one or both parties when writing contracts, upholding fiduciary duties and ensuring compliant, professional handling of terms, timelines, and legal obligations.

If you’ve ever watched two parties negotiate a deal and thought, “Somebody’s got to keep this straight,” you’re not alone. In Arizona real estate, contract writing isn’t just about filling in blanks. It’s about who you represent when those terms take shape. Article 26 sets a clear rule: licensees must act as a broker or salesperson representing one or both parties in a transaction when they’re involved in drafting the contract. It isn’t a vague guideline—it's a professional obligation that keeps the process fair, lawful, and focused on clients’ interests.

What Article 26 really means for you

Let’s break it down without getting lost in legal jargon. When you sit down to write or edit a contract, you’re not a passive scribe. You’re stepping into a representation role. If you’re working for a seller, you’re their agent. If you’re working for a buyer, you’re theirs. And in some cases, you may represent both sides with written consent. That’s the key idea: active representation, not neutral drafting that could blur lines between interests.

This distinction matters because real estate contracts are loaded with consequences. Earnest money timelines, contingency deadlines, visa timelines for inspections, title issues, and closing dates aren’t just numbers on a page. They’re living terms that affect money, risk, and expectations. By acting as a broker or salesperson for a party, you commit to fiduciary duties—loyalty, confidentiality, disclosure, and the best interests of the client you’re representing. You’re not simply calculating legal phrasing; you’re safeguarding someone’s financial stake and legal rights.

Why professionalism and legal grounding go hand in hand

Arizona law recognizes that contract writing is a professional service. When a licensee drafts or revises a contract, they bring more than wordsmithing to the table. They bring an understanding of market norms, risk allocation, and the practical flow of a deal from listing to closing. That means accuracy matters. A misworded clause can become a costly misunderstanding later. So, the act of representing a party in the contract isn’t just about “getting the terms down.” It’s about ensuring those terms comport with state statutes, local regulations, and the realities of a real estate transaction.

Another layer worth noting: transparency. Clients deserve to know who is on the other side of the pencil, so to speak. If you’re representing one party, you should clearly define your role and keep lines of communication open. If dual representation is on the table, it should be disclosed in writing and agreed to by both sides. The goal isn’t to create suspicion; it’s to prevent it by making roles explicit from day one.

Practical scenarios you’ll encounter

Think of a few common-but-crucial situations:

  • Listing agent representing the seller: You draft the initial contract, lay out terms, and steer negotiations in the seller’s best interest. Your fiduciary duty anchors every decision, from price to repair credits.

  • Buyer’s agent representing the buyer: You tailor contingencies around the buyer’s timeline, financing, and inspection preferences, all while protecting the client from terms that could jeopardize their first investment.

  • Dual representation with consent: Both sides agree you’ll represent both parties. Here, you’ll manage the delicate balance between loyalties, ensure fair treatment, and spell out mutually acceptable terms. This is where clear, written consent and ongoing disclosure become essential.

What happens if representation isn’t clear?

Confusion can breed conflicts, and conflicts can lead to disputes down the line. If you draft or sign a contract while pretending to be neutral or without clear representation, you risk your client’s trust and your own professional standing. It can also invite regulatory scrutiny. Keeping representation explicit isn’t just prudent; it’s a protection for you and your clients.

Best practices for licensees in contract writing

These aren’t gimmicks; they’re the kinds of steps you’ll thank yourself for later.

  • Confirm representation up front: At the moment you start drafting, make sure you know exactly who you represent. If you’re dealing with dual representations, get that consent in writing before you proceed.

  • Use standard, approved forms: Arizona has established forms and guidelines. They’re designed to reduce ambiguity and keep negotiations on solid ground.

  • Document every decision: Keep notes about who approved what term and when. If a change happens, record who authorized it and why.

  • Communicate clearly: Use plain language and avoid legal mumbo jumbo that can trip people up. Make sure both sides understand deadlines, contingencies, and remedies.

  • Disclose conflicts promptly: If a potential conflict arises, address it quickly and transparently. Better to pause and reassess than press on and risk a dispute later.

  • Coordinate with other professionals: Real estate isn’t a lone wolf activity. Title companies, lenders, and sometimes attorneys all help keep the process smooth. Share the plan and respect everyone’s roles.

  • Keep learning: Rules shift, forms update, and new guidance emerges. Regular continuing education isn’t a nice-to-have; it’s part of practicing responsibly.

Real-world implications: trust, risk, and clarity

When you embody the role of a broker or salesperson in contract drafting, you set a tone for the entire transaction. Your clients will notice whether you’re advocating for their interests, explaining risks honestly, and guiding them through the fine print. That trust has value beyond any single deal. It builds your reputation, earns referrals, and helps the market run more smoothly.

Of course, every good relationship has its tensions. Sometimes a client wants terms that seem risky, or another wants to push for a speedier closing. That’s where good judgment shines. You’re not there to win every negotiation; you’re there to protect your client’s best interests while staying within the boundaries of the law and the rules that govern your license.

A quick reminder about dual representation

Dual representation isn’t inherently wrong; it’s about consent and ethics. If both sides agree to have the same licensee represent them, you’ll need to navigate potential conflicts with care. The key is open disclosure and documented consent. When done thoughtfully, it can streamline communication and keep both parties informed. When done poorly, it can erode trust and invite complications. So, if you’re considering dual representation, proceed with caution and document everything.

Where to look for guidance

If you want a reliable compass, start with reputable sources. The Arizona Department of Real Estate outlines licensing duties and ethical guidelines that apply to contract writing. The Arizona Association of Realtors also provides resources, forms, and code-of-ethics guidance that align with state requirements. And, if you ever feel uncertain about a subtle legal point, it’s wise to consult with a trusted broker or a real estate attorney who understands Arizona’s landscape.

Bringing it all together

Article 26 isn’t a dry clause tucked away in a handbook. It’s a practical reminder that contract writing in Arizona real estate is a professional service delivered by someone who represents a party’s interests. It’s about clarity, accountability, and lawful action. It’s about building trust with clients who count on you to guard their financial stakes and to navigate the complexities that pop up along the way.

If you’re new to the lane of contract writing, take a moment to orient yourself around representation. Who are you representing? What terms are you advocating for? How will you document consent when dual representation is on the table? Answering these questions early sets the tone for a smooth, professional process that serves everyone involved.

A few closing thoughts

Real estate isn’t just about the house or the price tag. It’s about people making decisions that shape their futures. When you step into the role of a broker or salesperson in contract writing, you’re not only drafting a document—you’re helping to anchor trust, protect interests, and guide clients through a major life milestone. That’s a meaningful job, and one that deserves careful attention, thoughtful communication, and a steady commitment to doing right by your clients and the law.

If you ever find yourself unsure, remember: a clear representation role, proper disclosures, and well-documented terms aren’t just good practice—they are the backbone of professional service. And in Arizona, that backbone helps keep every deal steady, from the first signature to the final Closing Day.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy