AgencyIntermediateAlaska Exam

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, across most transactions
BDisclose the violation to the buyer and advise the buyer to address it in the offer or as a contingencyCorrect
CHandle the code violation personally to help the transaction close
DReport the violation to the city before informing the buyer

Why Disclose the violation to the buyer and advise the buyer to address it in the offer or as a contingency Is Correct

Answer B: Disclose the violation to the buyer and advise the buyer to address it in the offer or as a contingency

A buyer's agent who discovers a code violation should disclose it to the buyer immediately. This material information affects the buyer's decision.

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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