AgencyIntermediateAlaska Exam

A listing agent in Alaska discovers the seller is trying to conceal a history of flooding from buyers. The agent should:

AFollow the seller's instructions since the seller is the agent's client, which most practitioners would generally accept
BWithdraw from the listing if the seller refuses to disclose and the agent cannot avoid participating in the deceptionCorrect
CDisclose only if a buyer asks directly about flooding
DDocument the issue internally but say nothing to buyers

Why Withdraw from the listing if the seller refuses to disclose and the agent cannot avoid participating in the deception Is Correct

Answer B: Withdraw from the listing if the seller refuses to disclose and the agent cannot avoid participating in the deception

An agent cannot participate in or allow client fraud. If a seller directs the agent to conceal material defects, the agent must advise the seller to disclose and, if the seller refuses, consider withdrawing from the listing to avoid complicity in misrepresentation.

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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