Agency

An Alaska agent who represents the buyer in a transaction is obligated to tell the buyer if the seller is under financial distress because:

AIt gives the buyer information to make a lower offer unfairly
BFinancial distress of the seller may be a material fact relevant to the buyer's negotiating strategy✓ Correct
CThe buyer has no right to know the seller's financial condition
DFinancial information is confidential and cannot be disclosed

Explanation

Information about the seller's financial distress — such as a pending foreclosure, divorce, or job loss motivating a quick sale — may be material information that helps the buyer negotiate effectively. An agent representing the buyer should disclose such information if it is relevant and available.

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