Agency
A buyer's agent in Alaska negotiates a lower price for the buyer. The agent's commission is based on the sale price. If a lower price means less commission, this creates a potential:
ABreach of the buyer's fiduciary duty to the agent
BConflict of interest between the agent's financial interest and the buyer's best interest✓ Correct
CLegal basis for the agent to refuse to negotiate
DReason to switch to representing the seller
Explanation
When a buyer's agent's compensation is based on the sale price (a percentage), the agent has a financial incentive to get a higher price, which may conflict with the buyer's interest in the lowest possible price. Agents must disclose such conflicts and always act in the buyer's best interest.
Related Alaska Agency Questions
- A real estate licensee acts as a transaction broker in Alaska. This means the licensee:
- An Alaska buyer's agent owes which of the following duties to the buyer-client?
- An Alaska buyer tells their agent they want a house with an assumable mortgage. The agent has a duty to:
- Under Alaska law, when must a licensee provide the agency disclosure?
- In Alaska, a seller's agent owes which of the following duties to an unrepresented buyer?
- Under Alaska agency law, which type of agency relationship requires written disclosure and consent from both parties?
- In an Alaska real estate transaction, the listing broker's subagent cooperating broker represents:
- Subagency in Alaska traditionally meant that a cooperating broker:
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