ContractsIntermediateAlaska Exam

Under Alaska's Residential Real Property Transfer Disclosure Act, sellers of residential property with 1-4 units must:

AHire a licensed inspector and provide the report to buyers, under typical circumstances
BComplete and provide a seller's disclosure statement revealing known material defectsCorrect
CObtain an appraisal before listing the property
DProvide disclosure only if asked by the buyer in writing

Why Complete and provide a seller's disclosure statement revealing known material defects Is Correct

Answer B: Complete and provide a seller's disclosure statement revealing known material defects

Alaska requires sellers of 1-4 unit residential properties to complete and deliver a residential property condition disclosure statement to buyers, disclosing known material defects and other conditions affecting the property. The buyer has the right to cancel if the disclosure reveals unacceptable conditions.

Exam Tip: Contracts

Contract questions frequently test the essential elements required for a valid contract. Remember: competent parties, mutual consent, lawful object, and sufficient consideration. Watch for void vs. voidable distinctions.

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