AgencyIntermediateAlaska Exam

An Alaska seller instructs the listing agent to tell buyers the property 'has no foundation issues' when the agent has seen evidence of settling. The agent should:

AFollow the seller's instructions since the agent works for the seller, in general
BRefuse to make that statement and advise the seller to disclose the known issueCorrect
CMake the statement but add a disclaimer
DTell only buyers who directly ask about the foundation

Why Refuse to make that statement and advise the seller to disclose the known issue Is Correct

Answer B: Refuse to make that statement and advise the seller to disclose the known issue

An agent cannot make fraudulent or misleading statements to buyers even if instructed by the client. Making a false statement about foundation condition would constitute misrepresentation.

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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