AgencyIntermediateAlaska Exam

A listing agent in Alaska discovers that the seller concealed a leaking roof. The agent's duty is to:

AKeep the information confidential per the seller's instructions, in general
BDisclose the defect to prospective buyers as a known material factCorrect
CRemove the listing from the market
DAdvise the buyer to conduct their own inspection only

Why Disclose the defect to prospective buyers as a known material fact Is Correct

Answer B: Disclose the defect to prospective buyers as a known material fact

Alaska licensees have a duty to disclose known material defects affecting the property regardless of the seller's instructions. Concealing known defects can expose both the agent and seller to liability.

Exam Tip: Agency

Agency questions are among the most tested on the exam. Focus on the difference between client and customer, and memorize the fiduciary duties (OLD CAR). Watch for questions that try to blur the line between a general agent and a special agent.

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