Real Estate Practice in Alaska
Day-to-day Alaska practice centers on honest handling of trust money, accurate disclosure of property condition, and compliance with advertising and record-keeping rules. This chapter covers trust funds, disclosure, and honest dealing.
Trust Funds and Earnest Money
Earnest money and other trust funds received in a transaction must be handled through the broker's trust account and kept separate from the broker's personal and operating money. A salesperson who receives trust funds must deliver them promptly to the employing broker for deposit. Commingling or converting trust money is a serious violation of Alaska license law and can trigger discipline and a Surety Fund claim.
Property Condition Disclosure
Alaska law generally requires a seller of residential real property to complete a written disclosure statement describing the property's known condition, which is provided to the buyer. A licensee must not help a seller conceal known material defects and must disclose known material facts that affect value or desirability. Accurate disclosure protects the consumer and limits the licensee's exposure to misrepresentation claims.
Advertising and Records
Advertising by a licensee must be truthful and must be conducted under the supervision and name of the employing broker rather than the salesperson acting independently. Licensees may not use false or misleading statements to induce a transaction. Brokers must retain transaction and trust-account records so the Commission can verify compliance during an audit or investigation.