Under Alaska agency law, which of the following is NOT a fiduciary duty owed by a buyer's agent to a buyer client?
Correct Answer
C) Indemnification — guaranteeing the buyer against any financial loss in the transaction
Indemnification — guaranteeing a client against financial loss — is not a recognized fiduciary duty of a real estate agent under Alaska law or general agency law. The standard fiduciary duties owed by a buyer's agent under Alaska law and 12 AAC 64.010 are loyalty, confidentiality, obedience, disclosure, accounting, and reasonable care (often remembered as LCODAR or similar mnemonics). A real estate agent does not guarantee outcomes or indemnify clients against losses.
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Previous Question
Agent Patel is a buyer's agent representing a couple relocating from Seattle to Anchorage. The couple asks Agent Patel to find them a property where they can elect into Alaska's optional community property system under the Alaska Community Property Act. The couple assumes Alaska is a mandatory community property state like Washington. What must Agent Patel communicate to the couple about Alaska's property ownership system?
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Agent Olsen represents a seller in Nome. A buyer working without representation approaches Agent Olsen and signs an agreement confirming he is a customer, not a client. During negotiations, the buyer asks Agent Olsen: "Is the seller willing to come down on price?" Agent Olsen knows the seller has said privately she will accept $20,000 less than the listing price. Under Alaska agency law, what is Agent Olsen's correct course of action?