AgencyIntermediateAlaska Exam

An Alaska buyer's agent discovers that the property the buyer wants to purchase is owned by the buyer's agent's parent. The agent must:

AProceed with the transaction without any special disclosure
BDisclose this relationship to the buyer before proceedingCorrect
CWithdraw from representing the buyer immediately
DRefer the buyer to another agent without disclosure

Why Disclose this relationship to the buyer before proceeding Is Correct

Answer B: Disclose this relationship to the buyer before proceeding

An agent who has a personal relationship or financial interest related to a transaction must disclose this material fact to the client. Failure to disclose a personal relationship that could influence the agent's advice or objectivity is a breach of fiduciary duty and disclosure obligations.

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.

Key Agency Terms in This Question

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