ContractsIntermediateAlaska Exam

An Alaska builder/developer who sells new homes from a model home may NOT be required to provide a seller's disclosure statement because:

ANew homes have no material defects
BSome states and transactions exempt new construction from standard disclosure requirementsCorrect
CThe builder's warranty substitutes for disclosure
DThe purchase agreement for new construction is legally exempt, according to common practice

Why Some states and transactions exempt new construction from standard disclosure requirements Is Correct

Answer B: Some states and transactions exempt new construction from standard disclosure requirements

In some jurisdictions and circumstances, new construction sales may be handled differently from resale transactions regarding seller disclosure requirements. However, sellers (including builders) still must disclose known material defects and conditions affecting the property.

Exam Tip: Contracts

Contract questions frequently test the essential elements required for a valid contract. Remember: competent parties, mutual consent, lawful object, and sufficient consideration. Watch for void vs. voidable distinctions.

Key Contracts Terms in This Question

People Also Study

State-Specific Concepts

Disclosure Requirements

Practice More Alaska Real Estate Questions

1,400+ questions covering all exam topics. Start free — no signup required.

Take the Free Alaska Quiz →