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Broker Chen in Anchorage represents a buyer who wants to purchase a remote fly-in property accessible only by small aircraft in the interior of Alaska. The property has no road access and is off the electrical grid. Under Alaska agency law, which of the following best describes Broker Chen's obligation regarding the property's access and utility status?

Correct Answer

A) Broker Chen must disclose the access limitations and off-grid status to the buyer as material facts, regardless of whether the buyer asks

Under Alaska agency law and the unique characteristics of Alaska real estate, access type and utility availability are material facts that a buyer's agent must proactively disclose to the buyer client. Alaska's significant volume of fly-in and boat-in only properties makes access a particularly critical material fact. A buyer's agent owes the duty of disclosure to the buyer client, which includes all known material facts affecting the property's value or desirability — including the absence of road access and grid utilities — without waiting to be asked.

Answer Options
A
Broker Chen must disclose the access limitations and off-grid status to the buyer as material facts, regardless of whether the buyer asks
B
Broker Chen only needs to disclose access and utility information if the seller has already disclosed it in the seller's disclosure statement
C
Broker Chen may withhold access and utility information to protect the seller's negotiating position
D
Broker Chen's duty to disclose access limitations applies only if the buyer is obtaining conventional financing

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Related Topics & Key Terms

Key Terms:

buyers_agencyfiduciary_dutiesmaterial_factsremote_propertydisclosure_duty
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