During an open house in Wasilla, a buyer named Kevin tells the listing agent, "I love this house and I'll pay whatever it takes to get it." The listing agent does not represent Kevin. Under Alaska law, what must the listing agent do with this information?
Correct Answer
A) Disclose the information to the seller because the listing agent's fiduciary duty runs to the seller, not to Kevin
Under Alaska agency law and 12 AAC 64.010, a listing agent owes fiduciary duties exclusively to the seller. Kevin is a customer (not a client) of the listing agent, so the listing agent has no duty of confidentiality to Kevin. Any information Kevin voluntarily discloses that is material to the transaction — including his willingness to pay the asking price or more — must be disclosed to the seller. This is a core component of the fiduciary duty of disclosure owed to the seller.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The legal ending of an agency relationship, which can occur through completion, expiration, mutual agreement, breach, death, incapacity, or bankruptcy of either party.
The fiduciary obligation to protect a client's private information and not disclose it to third parties without permission, surviving even after the agency relationship ends.
In real estate, a client is someone to whom the agent owes fiduciary duties through an agency relationship, while a customer is a third party to whom the agent owes only honesty and fair dealing.
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