Alaska License LawIntermediateAlaska Exam
A real estate broker in Alaska who also holds a separate business providing mortgage services must:
AChoose between the two licenses
BDisclose this affiliated business arrangement to clients who are referred to the mortgage serviceCorrect
CObtain approval from AREC before offering mortgage services, though specifics can vary by situation
DOperate both businesses from the same office
Why Disclose this affiliated business arrangement to clients who are referred to the mortgage service Is Correct
Answer B: Disclose this affiliated business arrangement to clients who are referred to the mortgage service
Under RESPA's affiliated business arrangement (AfBA) disclosure requirements, a broker who refers clients to a business in which the broker has an ownership interest must disclose the arrangement and the estimated charges. The client must be free to use other providers.
Key Alaska License Law Terms in This Question
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Key Terms to Know
Lien
A financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
Short SaleA sale of real property where the sale proceeds are less than the outstanding mortgage balance, requiring lender approval.
Adjustable-Rate Mortgage (ARM)A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.
Discount PointsPrepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.
State-Specific Concepts
Disclosure RequirementsAREC Regulation
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