AgencyIntermediateAlaska Exam

Which statement about a seller's agent in Alaska is TRUE?

AThe seller's agent may lie to the buyer to achieve the seller's objectives
BThe seller's agent owes the buyer honest dealing and must disclose known material defectsCorrect
CThe seller's agent owes fiduciary duties to both buyer and seller
DThe seller's agent may recommend the seller accept a lower offer without consulting the seller

Why The seller's agent owes the buyer honest dealing and must disclose known material defects Is Correct

Answer B: The seller's agent owes the buyer honest dealing and must disclose known material defects

While a seller's agent owes fiduciary duties only to the seller, they must still deal honestly with buyers and disclose known material defects. They cannot make fraudulent misrepresentations to the buyer.

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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