Agency

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 proceeding✓ Correct
CWithdraw from representing the buyer immediately
DRefer the buyer to another agent without disclosure

Explanation

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.

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