AK Real Estate key terms

A relationship in which a licensee is authorized to act for a buyer or seller and owes that person fiduciary duties; in Alaska it is created by a written agreement and disclosed to the other party in the transaction.

The legal obligations a licensee owes a client - loyalty, obedience to lawful instructions, disclosure, confidentiality, reasonable care and skill, and accounting for money and property - which exceed the duties owed to customers.

The broker whose efforts began an uninterrupted chain of events leading to a ready, willing, and able buyer or seller on the agreed terms; it determines who is paid a commission when brokers dispute entitlement.

Representation of both the buyer and the seller in the same transaction by the same brokerage; it requires informed written consent and limits advocacy because the licensee cannot favor either client.

An Alaska licensee who, with the parties' written consent, assists both buyer and seller in a transaction without advocating for either; duties are limited to honesty, disclosure of material facts, and accounting.

A written agreement giving one brokerage the right to a commission no matter who procures the buyer, including when the owner personally sells the property during the listing period.

A rule requiring certain agreements - including real estate sale contracts, leases longer than one year, and listing or agency agreements - to be written and signed by the party to be bound before they are enforceable.

Money a buyer deposits when a contract is signed as evidence of good faith; it is held in trust, credited toward the purchase price at closing, and may be forfeited if the buyer defaults.

A contract condition - such as financing approval, a satisfactory inspection, an appraisal, or the sale of the buyer's current home - that must be met or waived before a party is obligated to close.

A contract provision setting a stated sum, often the earnest money, as the agreed remedy if a party defaults, enforceable when actual damages would be difficult to determine.

The written promise to repay a loan on stated terms - principal, interest rate, payment schedule, and maturity date - that creates personal liability separate from the mortgage or deed of trust.

A three-party security instrument involving borrower, lender, and trustee that conveys title to a trustee as security for a loan and permits nonjudicial foreclosure; commonly used to secure Alaska mortgages.

The loan amount divided by the property's appraised value or purchase price, expressed as a percentage; higher ratios generally require mortgage insurance and stricter underwriting.

The four components of a typical monthly housing payment: principal, interest, property taxes, and hazard insurance; lenders often add mortgage insurance and collect taxes and insurance in escrow.

A nonjudicial foreclosure conducted under a deed of trust by the trustee after required notices, without court supervision, in which the property is sold to the highest bidder.

A deed that transfers whatever interest the grantor may hold in the property with no warranty of title; often used to clear or shift interests among co-owners or family members.

A deed using Alaska's statutory form that contains specified covenants of title, such as seisin, right to convey, quiet enjoyment, and warranty against encumbrances, giving the grantee more protection than a quitclaim deed.

A policy, bought with a one-time premium, protecting an owner or lender against covered title defects that existed before the policy date, such as undisclosed liens, forgery, or recording errors.

Co-ownership by two or more persons holding separate, undivided interests that may be unequal and are inheritable; there is no right of survivorship, and each owner may sell or encumber a share.

Property where owners hold individual units plus a shared interest in common areas, governed by a declaration, bylaws, and an owners' association; Alaska regulates these under its Uniform Common Interest Ownership Act.

A map of a subdivision showing lots, blocks, streets, and easements that must be approved by the local platting authority and recorded before parcels can be sold by lot description.

An administrative exception to a zoning rule granted by a local board when strict application would create undue hardship unique to the property, while still preserving the ordinance's overall intent.

A property use that lawfully existed before a zoning change and may continue even though it no longer complies with current rules, though it usually cannot be expanded or revived after abandonment.

A due-diligence review of a property's history, public records, and site conditions to identify potential contamination; it supports the innocent landowner defense to federal cleanup liability.

The reasonably probable, legally permissible, physically possible, and financially feasible use that produces the greatest value; it is the foundation for every appraisal approach.

An appraisal method that estimates value by comparing the subject property with recently sold similar properties, then adjusting for differences in location, size, condition, and features.

A rate expressing the relationship between a property's annual net operating income and its value or price; dividing net income by the rate estimates value under the income approach.

An analysis of comparable active listings, pending sales, and closed sales that a licensee prepares to suggest a listing or offer price; it is not an appraisal and may not be presented as one.

Alaska's statutory form under AS 34.70 on which a seller of residential property discloses known material defects and other required information about the property to a prospective buyer.

Advertising that hides or omits the name of the brokerage or responsible licensee; it is prohibited because the public must be able to identify the licensed party providing the service.

Information that could affect a reasonable party's decision to buy, sell, or lease at a given price or on given terms; licensees must disclose it to clients and must treat all parties honestly.

Dividing an ongoing expense or income item - such as property taxes, rent, or association dues - between buyer and seller at closing according to the number of days each owns the property.

Closing statement entries: a debit is an amount charged to a party and a credit is an amount paid to or on behalf of that party; the columns must balance for each party at settlement.

Prepaid interest charged by a lender at closing, where one point equals one percent of the loan amount; paying points typically reduces the note interest rate.

The body within Alaska's Division of Corporations, Business and Professional Licensing that licenses real estate professionals, adopts regulations, and disciplines licensees who violate license law.

An Alaska fund that may pay valid court judgments against licensees who cannot or will not pay, reimbursing consumers harmed by licensee conduct; payments can affect the licensee's continued licensure.

Alaska law (AS 34.55) requiring registration of subdivided land before it is offered for sale and imposing disclosure duties on sellers of subdivided lots, with exemptions for certain transfers.

Alaska's geographic unit for recording real property documents, kept by the state recorder; because Alaska has no counties, documents are recorded in the district where the land lies.

Alaska's statute (AS 34.03) governing residential rentals, covering security deposits, habitability, notice to terminate, repairs, access, and remedies available to landlords and tenants.

The tax rate applied to each $1,000 of a property's assessed value to compute the annual tax bill; in Alaska, property taxes are levied by local municipalities and boroughs, not by the state.