Agency

An Alaska real estate agent mistakenly tells a buyer that the property has no history of flooding when it does. The agent faces liability for:

AIntentional misrepresentation only
BNegligent misrepresentation, as the agent had a duty to know material facts✓ Correct
CNo liability because the buyer should have conducted their own investigation
DOnly moral liability, not legal liability

Explanation

An agent who makes false statements without knowing them to be false but without reasonable care to verify them may be liable for negligent misrepresentation. Agents have a duty to know material facts about properties they list or show.

Related Alaska Agency Questions

Practice More Alaska Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free Alaska Quiz →