Agent Rivera is a buyer's agent representing the Johnsons in purchasing a property in Kodiak. During due diligence, Agent Rivera learns that the property sits on an area with known permafrost conditions that could affect the foundation. The seller has not mentioned this in the seller's disclosure. What is Agent Rivera's obligation under Alaska agency law?
Correct Answer
A) Disclose the permafrost information to the Johnsons immediately, as it is a material fact affecting the property
Under Alaska agency law (12 AAC 64.010) and the unique Alaska environment, a buyer's agent owes the buyer client the fiduciary duty of disclosure, which includes all known material facts. Permafrost conditions are explicitly required to be disclosed under AS 34.70 (Alaska Seller Disclosure Act) and are a well-recognized material fact in Alaska real estate due to their potential to cause structural instability and foundation damage. Agent Rivera must disclose this information to the Johnsons immediately upon learning of it, regardless of whether the seller has fulfilled the seller's own disclosure obligations.
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