Key Takeaways
- Alaska requires written agency disclosure at first substantive contact with a consumer
- The disclosure must explain the types of agency relationships available
- Licensees must obtain written acknowledgment of the disclosure from consumers
- Dual agency disclosure and consent must be obtained before the transaction becomes binding
- Personal interest disclosures are required when licensees have a stake in the transaction
Alaska Disclosure Requirements
Alaska law requires real estate licensees to make specific disclosures to consumers throughout the transaction process.
Agency Disclosure
When to Disclose
Agency disclosure must be made at the earliest of:
- First substantive contact with a consumer
- Before showing property
- Before presenting any offer or counteroffer
- Before the consumer provides confidential information
What Must Be Disclosed
The agency disclosure must explain:
| Topic | Content |
|---|---|
| Types of relationships | Seller agency, buyer agency, dual agency, designated agency |
| Agent's role | Who the agent represents |
| Duties owed | What the agent will do for each party |
| Compensation | Who pays and how |
Written Acknowledgment
| Requirement | Details |
|---|---|
| Form | Written agency disclosure form |
| Signature | Consumer should sign acknowledging receipt |
| If refused | Note refusal on form, continue with transaction |
| Copies | Provide copy to consumer |
Best Practice: Have consumers sign the disclosure form even though Alaska allows proceeding if they refuse. Documentation protects everyone.
Dual Agency Disclosure
Special Requirements for Dual Agency
Dual agency requires additional disclosure and consent:
| Step | Requirement |
|---|---|
| 1. Initial disclosure | Inform both parties of dual agency possibility |
| 2. Written consent | Obtain signed consent from both parties |
| 3. Timing | Before transaction becomes binding |
| 4. Content | Explain limitations of dual agency |
Limitations Under Dual Agency
In dual agency, the licensee cannot:
- Disclose that buyer would pay more than offered
- Disclose that seller would accept less than listed
- Disclose confidential motivation of either party
- Advocate for one party over the other
- Recommend a specific price
Warning: Failure to obtain proper dual agency consent can result in disciplinary action and liability.
Personal Interest Disclosure
When Required
A licensee must disclose when they have a personal interest in the transaction:
| Situation | Disclosure Required |
|---|---|
| Licensee is buyer or seller | Yes |
| Licensee's family member is party | Yes |
| Licensee has ownership interest in property | Yes |
| Licensee has financial interest beyond commission | Yes |
| Licensee's business entity is a party | Yes |
How to Disclose
| Requirement | Details |
|---|---|
| Format | Must be in writing |
| Timing | Before offer is accepted |
| To whom | All parties to the transaction |
| Content | Nature and extent of interest |
Example: "I, [Agent Name], am a licensed real estate salesperson and have a personal ownership interest in the property located at [Address]. This disclosure is made pursuant to AS 08.88."
Material Fact Disclosure
What Are Material Facts?
Material facts are facts that would likely affect a person's decision to buy or the price they would pay:
| Material Facts | Examples |
|---|---|
| Physical condition | Structural defects, roof condition, systems |
| Environmental | Contamination, flood zones, permafrost issues |
| Legal | Liens, easements, boundary disputes |
| Title | Encumbrances, ownership questions |
| Alaska-specific | Remote access, seasonal access, utilities |
Alaska-Specific Material Facts
Given Alaska's unique geography, certain facts may be material:
| Factor | Why Material |
|---|---|
| Access | Many properties only accessible by air or water |
| Utilities | No public utilities in remote areas |
| Permafrost | Ground conditions affect construction |
| Climate | Extreme temperatures affect property |
| Wildlife | Bear activity, wildlife corridors |
Compensation Disclosure
A licensee must disclose if receiving compensation from more than one party:
| Requirement | Details |
|---|---|
| When | Before offer is accepted |
| How | In writing |
| To whom | All parties paying compensation |
| Content | Source and amount of all compensation |
When must agency disclosure be made in Alaska?
When must dual agency consent be obtained?
Which of the following requires a personal interest disclosure in Alaska?