Agency

An Alaska agent who is representing a buyer discovers the property has a code violation the seller is unaware of. The agent should:

AKeep this information confidential to protect the buyer's negotiating position
BDisclose the violation to the buyer and advise the buyer to address it in the offer or as a contingency✓ Correct
CHandle the code violation personally to help the transaction close
DReport the violation to the city before informing the buyer

Explanation

A buyer's agent who discovers a code violation should disclose it to the buyer immediately. This material information affects the buyer's decision. The buyer may then negotiate a price reduction, require the seller to correct the violation, or use it as leverage in negotiations.

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