AgencyIntermediateAlaska Exam

An Alaska agent who does not disclose their professional opinion that the buyer is overpaying for a property is:

AProtecting the seller's interests by remaining silent
BPotentially breaching the duty to advise the buyer of all relevant facts affecting their decisionCorrect
CFollowing standard practice — agents rarely comment on price, as is customary in this jurisdiction
DComplying with the duty of obedience by not interfering

Why Potentially breaching the duty to advise the buyer of all relevant facts affecting their decision Is Correct

Answer B: Potentially breaching the duty to advise the buyer of all relevant facts affecting their decision

A buyer's agent owes the buyer the duty of disclosure and reasonable care, which includes advising the buyer about material information relevant to their decision — including when comparable sales suggest the property is overpriced. Remaining silent about a material pricing issue may breach the agent's duty.

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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