AgencyIntermediateAlaska Exam

An Alaska buyer's agent who discovers a previously unknown structural problem during a home visit should:

AKeep the information confidential from the seller
BDisclose the information to the buyer and recommend a professional inspectionCorrect
CAdvise the buyer to immediately lower their offer without inspection, in general
DOnly disclose if the defect exceeds $5,000 in estimated repair cost

Why Disclose the information to the buyer and recommend a professional inspection Is Correct

Answer B: Disclose the information to the buyer and recommend a professional inspection

An agent who becomes aware of material information — including potential structural problems — must disclose it to their client (the buyer). Concealing such information, or failing to recommend professional inspection, would breach the duty of disclosure and reasonable care.

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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