AgencyIntermediateAlaska Exam

An Alaska buyer's agent who knows the buyer's maximum budget should NOT:

AUse this information to help the buyer search for appropriate properties
BDisclose the buyer's maximum price to the seller's agent without the buyer's authorizationCorrect
CAdvise the buyer on making competitive offers
DUse this information to exclude properties above the buyer's budget from the search, in general

Why Disclose the buyer's maximum price to the seller's agent without the buyer's authorization Is Correct

Answer B: Disclose the buyer's maximum price to the seller's agent without the buyer's authorization

The buyer's maximum budget is confidential information. Disclosing it to the seller's agent without the buyer's consent would be a serious breach of the duty of confidentiality and loyalty — it would directly harm the buyer's negotiating position.

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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