AgencyIntermediateAlaska Exam

An Alaska listing agent discovers the property has a sinkhole risk due to underground cave formations. The agent should:

ADisclose this only after an offer is accepted
BDisclose this material fact to all prospective buyers before offers are madeCorrect
CRefer the buyer to the county for environmental information, as a general rule
DOnly disclose if the seller authorizes disclosure

Why Disclose this material fact to all prospective buyers before offers are made Is Correct

Answer B: Disclose this material fact to all prospective buyers before offers are made

Known sinkhole risk is a material fact that the listing agent must proactively disclose to all prospective buyers. The agent cannot wait for the seller's permission — independent disclosure duties require proactive disclosure of all known material defects.

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.

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