Environmental

A real estate licensee in Alaska who learns that a property has a 'recognized environmental condition' (REC) from a Phase I ESA has a duty to:

AAdvise the client to walk away from the purchase
BDisclose the REC to their client and discuss its implications for the transaction✓ Correct
CCommission a Phase II ESA at the client's expense without their consent
DInform ADEC before telling the client

Explanation

A recognized environmental condition (REC) is a material fact. The agent must disclose it to their client and discuss its implications — including the need for further investigation (Phase II ESA), potential cleanup liability, and the impact on the property's value and financing. The client can then make an informed decision.

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