Alaska Agency
Practice Questions & Answers (2026)

Agency law is one of the most tested subjects on the Alaska real estate exam, and it's also one of the most misunderstood. The Alaska Real Estate Commission expects licensees to understand the legal duties owed to clients vs. customers, and the specific timing of required disclosures under Alaska law. Study these questions carefully — candidates who rely on national agency frameworks and don't account for AK-specific rules are among the most common failures on the state portion.

Practice Questions

Alaska Agency — Practice Questions & Answers

142 questions on Agency from the Alaska real estate question bank. First 10 are free — sign up to unlock all 142.

Q1. In Alaska, a seller's agent owes which of the following duties to an unrepresented buyer?

A.Full fiduciary duties including loyalty and confidentiality
B.Honesty, fairness, and disclosure of known material defects
C.The same duties owed to the seller
D.No duties whatsoever

Explanation

A seller's agent owes limited statutory duties to unrepresented buyers, including honesty, fairness, and disclosure of known material facts. The full fiduciary duties of loyalty, confidentiality, and undivided allegiance are owed only to the seller-client.

Q2. Which type of agency is created when an agent acts on behalf of a principal without explicit authorization, but the principal later approves the action?

A.Express agency
B.Implied agency
C.Ratification
D.Ostensible agency

Explanation

Ratification occurs when a principal approves an unauthorized act performed by an agent after the fact. The ratification makes the act as binding as if it had been originally authorized.

Q3. A buyer's agent in Alaska has a fiduciary duty to:

A.Disclose the buyer's financial limitations to the seller
B.Obey all lawful instructions from the buyer-client
C.Present all offers to the listing broker first
D.Act in the seller's best interest during negotiations

Explanation

A buyer's agent owes fiduciary duties to the buyer, including obedience to lawful instructions. The agent must NOT disclose the buyer's financial limitations to the seller, as this would breach the duty of confidentiality owed to the buyer-client.

Q4. Which of the following best describes a designated agency arrangement?

A.The broker personally represents both buyer and seller
B.Different agents within the same brokerage are designated to each represent the buyer and seller separately
C.An agent represents multiple buyers competing for the same property
D.A broker from a different state is designated to handle the transaction

Explanation

In designated agency, the broker assigns different agents within the same firm to represent the buyer and seller separately. This arrangement allows each party to receive undivided representation while being clients of the same brokerage.

Q5. An agent who represents neither the buyer nor the seller but facilitates the transaction is known as a:

A.Dual agent
B.Transactional broker
C.Designated agent
D.Subagent

Explanation

A transactional broker (also called a transaction coordinator or facilitator in some states) assists both parties in completing the transaction without representing either party as a fiduciary.

Q6. Under Alaska agency law, when must a licensee provide the agency disclosure to a potential buyer?

A.At the time of closing
B.Before writing an offer
C.At the first substantial contact with the potential client
D.Only if the buyer requests it

Explanation

Alaska requires agency disclosure at the time of first substantial contact with a prospective client. This ensures that consumers understand who the agent represents before any confidential information is shared.

Q7. A listing agent learns that the seller is willing to accept $20,000 less than the listed price. The agent should:

A.Disclose this information to all potential buyers immediately
B.Keep this information confidential as it is the seller's privileged information
C.Include this information in the MLS listing
D.Disclose it only if directly asked by a buyer

Explanation

The seller's minimum acceptable price is confidential information. The listing agent has a fiduciary duty of confidentiality to the seller and must not disclose the seller's motivation or financial flexibility to buyers.

Q8. Subagency occurs when:

A.A buyer's agent refers the buyer to a mortgage lender
B.A cooperating broker works on behalf of the listing broker and the seller
C.A salesperson works under a broker's supervision
D.A broker opens a second branch office

Explanation

Subagency is created when a cooperating (selling) broker acts as the agent of the listing broker, thereby representing the seller. Subagency has become less common as buyer agency has grown in practice.

Q9. An agent's duty of loyalty to a client means the agent must:

A.Always recommend the highest listed price
B.Place the client's interests above all others, including the agent's own
C.Disclose all offers received on the property
D.Always recommend accepting the first offer

Explanation

The fiduciary duty of loyalty requires an agent to place the client's interests above their own and above the interests of any third party, including the agent's interest in earning a commission.

Q10. When a buyer's agent receives a counteroffer from the seller, the agent's duty is to:

A.Advise the buyer to reject it if it differs from the original offer
B.Present it to the buyer promptly and explain its terms
C.Negotiate directly with the seller without involving the buyer
D.Submit it to the Alaska Real Estate Commission for review

Explanation

The duty of disclosure and communication requires a buyer's agent to promptly present all counteroffers and explain the terms to the buyer-client so the buyer can make an informed decision.

Q11. In Alaska, if a real estate firm represents both the buyer and seller in the same transaction without designating separate agents, this is considered:

A.Illegal per se
B.Permitted dual agency with written consent
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