AgencyIntermediateAlaska Exam

An Alaska agent who receives a deposit that belongs to the client is acting in a(n):

AFiduciary capacityCorrect
BIndependent contractor capacity
CCustodial capacity only, with no legal obligations
DMinisterial capacity

Why Fiduciary capacity Is Correct

Answer A: Fiduciary capacity

When an agent receives and holds funds (such as an earnest money deposit) that belong to the client, the agent is acting in a fiduciary capacity. The agent owes the highest duty of care in handling these funds — they must be deposited promptly in the proper trust account and not commingled.

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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