AK Real Estate cheat sheet

Agency is a fiduciary relationship in which a licensee acts for a principal; it may be created by express written agreement, implication, or ratification.

Core fiduciary duties are loyalty, obedience, disclosure, confidentiality, accounting, and reasonable care and diligence.

Alaska requires licensees to give consumers a written agency or consumer disclosure at first substantive contact and to identify whom they represent.

Dual agency requires informed written consent from all parties and fair treatment; the broker may not advocate for one side over the other.

A salesperson acting for a buyer may be a subagent of the seller unless the brokerage relationship is modified in writing.

Confidential information learned during an agency relationship remains protected after the relationship ends.

Material facts affecting value or a party's decision must be disclosed to all parties, regardless of agency.

Trust funds must be held in a separate escrow or trust account; commingling with business or personal funds is prohibited.

A broker is responsible for supervising licensees and unlicensed assistants acting under the brokerage.

The statute of frauds requires real estate purchase contracts, leases over one year, and deeds to be written and signed by the party to be charged.

Essential contract elements are competent parties, lawful object, consideration, mutual assent, and a sufficient legal description.

Earnest money is held in trust and applied to the purchase price, returned, or forfeited as the contract specifies.

Common contingencies include financing, inspection, appraisal, title review, and sale of the buyer's current home.

A liquidated damages clause must be a reasonable estimate of loss, not a penalty, to be enforceable.

Assignment transfers a party's rights and obligations; novation substitutes a new party and releases the original party.

Closing documents commonly include the deed, settlement statement, title insurance policy, loan documents, and required disclosures.

If the contract states time is of the essence, deadlines are enforceable and late performance can be a breach.

Loan-to-value ratio = loan amount ÷ property value or purchase price; down payment = price − loan amount.

One discount point equals 1% of the loan amount and is prepaid interest used to lower the note rate.

APR includes the interest rate plus certain loan fees and points, giving a broader measure of borrowing cost.

PITI = principal + interest + taxes + insurance; lenders often collect taxes and insurance in escrow.

Fixed-rate loans keep the same rate and principal-and-interest payment; adjustable-rate loans change with an index plus margin, subject to caps.

Amortized payment formula: M = P × [r(1+r)^n] ÷ [(1+r)^n − 1], where r is periodic rate and n is number of payments.

FHA, VA, USDA, conventional, and Alaska Housing Finance Corporation programs differ in down payment, insurance, and eligibility rules.

A loan estimate discloses the estimated interest rate, monthly payment, closing costs, and cash to close.

Fee simple absolute is the largest estate; life estates, remainders, and reversions are lesser estates.

An easement appurtenant benefits a dominant parcel; an easement in gross benefits a person or entity rather than a parcel.

Tenancy in common has no survivorship; joint tenancy requires unity of time, title, interest, and possession and includes survivorship.

A deed must identify grantor and grantee, state consideration, contain a legal description, be signed by grantor, and be delivered and accepted.

General warranty deeds include broad covenants; special warranty deeds cover grantor's period; quitclaim deeds convey only grantor's interest.

Recording a deed gives constructive notice; Alaska's race-notice statute protects a later good-faith purchaser who records first.

Adverse possession in Alaska generally requires open, notorious, exclusive, hostile, and continuous possession for the statutory period.

A lien is a charge against property securing debt; an encumbrance includes liens, easements, covenants, and other restrictions.

Zoning regulates use, height, bulk, density, setbacks, and lot coverage under the local comprehensive plan.

A nonconforming use legally existed before zoning changed and may continue, often with limits on expansion or reconstruction.

A variance relieves a unique hardship from a dimensional standard; a conditional use permit allows a specially reviewed use.

Subdivision plats typically require local approval, road and utility standards, and recording before lots can be sold.

Floodplain and wetlands rules can require permits, elevation certificates, or mitigation before development.

CERCLA imposes liability on owners and operators for hazardous substance releases; a Phase I environmental site assessment is common due diligence.

Alaska DEC administers spill reporting and environmental cleanup programs; reportable releases must be reported promptly.

Fair housing and ADA rules limit discriminatory land-use and design practices in covered housing.

Sales comparison approach adjusts recent comparable sales for differences such as location, size, condition, and features.

Cost approach value = replacement or reproduction cost − depreciation + land value.

Income approach value = net operating income ÷ capitalization rate; cap rate = NOI ÷ value.

Gross rent multiplier = sale price ÷ gross monthly or annual rent.

Highest and best use must be legally permissible, physically possible, financially feasible, and maximally productive.

Absorption rate = units sold or leased in a period ÷ available inventory; it indicates market demand.

A CMA estimates probable price for listing purposes; a licensed appraiser's appraisal is a supportable opinion of value.

Adjustments are made to the comparable property: if the comparable is superior, subtract; if inferior, add.

Advertising must be truthful, not misleading, and identify the brokerage name as required by Alaska rules.

Federal fair housing protects race, color, religion, sex, national origin, familial status, and disability; Alaska law adds protected classes.

Sellers must disclose known material defects through required property disclosure forms; licensees must not conceal them.

Agency or consumer disclosures must be given at first substantive contact and documented.

Unlicensed assistants may perform clerical tasks but may not negotiate, show property for compensation, or give advice about terms.

Internet and social media ads are subject to the same brokerage identification and truthfulness rules as print ads.

Licensees must protect confidential client information and may not use it for personal advantage.

Earnest money receipts and transaction records must be maintained and produced to the Commission on request.

Commission = sale price × commission rate; each broker's share = commission × split percentage.

Seller net = sale price − commission − closing costs − loan payoffs − other agreed charges.

Property tax proration = annual tax × (days seller owns ÷ days in year), unless the contract uses another method.

Rent proration = monthly rent × (days buyer owns ÷ days in month) or actual-day method stated in contract.

Loan payoff = unpaid principal + accrued interest through payoff date + prepayment penalty or fees, if any.

One acre = 43,560 square feet; one section = 640 acres; one square mile = 640 acres.

Points cost = loan amount × points percentage; one point on a $200,000 loan is $2,000.

Alaska does not impose a state real estate transfer tax; local governments may charge recording fees.

The Alaska Real Estate Commission licenses brokers and salespersons, adopts regulations, and disciplines licensees.

A salesperson must be affiliated with and supervised by a licensed broker.

Licensees must renew biennially and complete Commission-approved continuing education, including Alaska-specific requirements.

Brokers must maintain trust accounts for client funds and keep records available for Commission inspection.

Unlicensed persons may not perform acts requiring a license, such as negotiating or collecting compensation for brokerage services.

The Commission may investigate complaints and impose fines, suspension, revocation, or other discipline.

Advertising and office signage must comply with Commission rules and identify the brokerage.

Licensees must notify the Commission of changes in business address or broker affiliation as required by regulation.

The Alaska Land Sales Practices Act regulates certain offerings of subdivided land and requires disclosure and registration unless an exemption applies.

The Alaska Uniform Residential Landlord and Tenant Act governs most residential rentals, with exceptions such as certain owner-occupied arrangements.

Alaska limits residential security deposits to two months' rent in most cases and requires return with an itemized accounting within the statutory period.

Month-to-month tenancies generally require 30 days' written notice to terminate under Alaska law.

Recording occurs with the district recorder; documents must meet legibility, acknowledgment, and fee requirements.

Recorded documents provide constructive notice to later purchasers and lenders.

Alaska has no statewide real property tax; municipalities and boroughs assess and levy property taxes locally.

Property tax liens attach to the property and can be foreclosed if taxes remain unpaid.