Fiduciary Duties of Agents in Alaska: Real Estate Exam Guide

Last updated: April 2026

Navigating the complex landscape of agency law is a fundamental requirement for any aspiring real estate professional. For candidates preparing for the Alaska real estate licensing exam, understanding the fiduciary duties of agents is not just about passing a test—it is about establishing the legal and ethical foundation of your entire career. This guide delves into the specific statutory obligations outlined by the Alaska Real Estate Commission (AREC) and Alaska Statutes (AS 08.88).

To view this topic within the broader context of your exam preparation, be sure to check out our Complete Alaska Exam Guide.

Understanding Fiduciary Duties in Alaska

In real estate, a fiduciary relationship is one of utmost trust and confidence. When a consumer hires a real estate licensee to represent them, the licensee becomes a fiduciary, legally obligated to act in the best financial and personal interests of that client.

While many states rely heavily on common law to define these duties, Alaska has codified agency relationships and licensee duties directly into state law under Alaska Statutes Title 08, Chapter 88 (AS 08.88). This means that your obligations are strictly defined by statute, replacing traditional common law agency rules in many transaction scenarios.

The "OLD CAR" Framework and Alaska Statutes

Nationwide, the easiest way to remember fiduciary duties for the real estate exam is the acronym OLD CAR. While Alaska's specific statutory language under AS 08.88.615 lists these duties slightly differently, the OLD CAR framework remains the most effective way to memorize your obligations to a client.

Obedience and Loyalty

Obedience: You must obey all lawful instructions from your client. If a seller instructs you not to show the property on Sundays, you must comply. However, if a seller instructs you to hide a known structural defect, you must refuse, as obeying would violate the law.

Loyalty: You must place your client’s interests above all others, including your own. In Alaska, this means negotiating the best possible price and terms for your client and avoiding any undisclosed conflicts of interest.

Disclosure and Confidentiality

Disclosure: Licensees must disclose all material facts related to the property or the transaction. For a seller's agent, this includes presenting all offers promptly. For a buyer's agent, this means disclosing if the property is overpriced or if there are adverse conditions in the neighborhood.

Confidentiality: You must keep your client's personal information, financial status, and motivations strictly confidential. In Alaska, the duty of confidentiality survives the closing of the transaction. You may never disclose this information unless authorized by the client in writing or required by law.

Accounting and Reasonable Care

Accounting: Licensees must safeguard all money and property entrusted to them. In Alaska, earnest money must be deposited into a broker’s trust account or a designated escrow account strictly according to the timeline outlined in the purchase agreement. Commingling (mixing client funds with personal funds) is strictly prohibited.

Reasonable Care: You are expected to use your professional skill and training to protect your client. This includes correctly filling out paperwork, meeting deadlines, and advising clients to seek expert advice (like a lawyer or home inspector) when an issue falls outside your scope of expertise. For more on how reasonable care applies to document preparation, review the Alaska Contract Essentials and Elements.

Duties Owed to Unrepresented Persons (Customers)

A major concept on the Alaska real estate exam is the distinction between a Client (someone you represent) and a Customer (an unrepresented person). According to AS 08.88.620, even if you do not represent a party, you still owe them specific duties:

• Honesty and Fair Dealing: You cannot lie to or deceive an unrepresented buyer or seller.
• Reasonable Care and Skill: You must perform your duties competently.
• Disclosure of Material Defects: A seller's agent must disclose all known latent (hidden) material defects to an unrepresented buyer, even if the seller asks the agent to keep quiet.

Practical Scenario: You represent a seller. An unrepresented buyer asks you if the seller will accept $20,000 below the asking price. Because you owe loyalty to the seller, you cannot disclose the seller's bottom line. However, because you owe honesty to the buyer, you must answer their questions about the property's physical condition truthfully.

The "Neutral Licensee" in Alaska

One of the most critical Alaska-specific laws you will be tested on is the state's approach to dual agency. Traditional dual agency, where an agent advocates for both the buyer and the seller, is not practiced in Alaska.

Instead, Alaska uses the concept of a Neutral Licensee (AS 08.88.600). If a licensee wishes to facilitate a transaction between a buyer and a seller in the same transaction, they must get informed, written consent from both parties to act as a neutral licensee.

As a neutral licensee, the agent cannot advocate for either party. Furthermore, a neutral licensee is strictly prohibited from disclosing:

• That the buyer is willing to pay more than the offered price.
• That the seller is willing to accept less than the asking price.
• The specific motivating factors of either party.
• That a party will agree to financing terms other than those offered.

Common Fiduciary Violations

Understanding where agents typically fail in their fiduciary duties can help you grasp the practical application of these laws. The chart below illustrates the most common types of fiduciary breaches that lead to disciplinary action by real estate commissions.