Selling a House in Alaska

Selling a house is one of the most significant legal transactions you'll ever participate in. It's important to know your legal rights and understand the process.

Working With a Real Estate Agent

In Alaska, real estate agents may represent sellers, buyers or act as a dual agents in a real estate sales transaction. Real estate agents have what's called a "fiduciary duty" to the party who they are representing, in this case, the seller, and they are held by law to owe specific duties to that person. In addition to duties or obligations that are stated in a listing agreement or other contract, a fiduciary's duties include:

• Loyalty
• Obedience
• Disclosure
• Confidentiality
• Reasonable care
• Diligence
• Accounting

Alaska law requires that you give a written property disclosure statement to buyers prior to accepting an offer to purchase on all residential property. The statement is used to disclose problems that could affect the property's value or desirability. Generally you are responsible for disclosing only information that is within your own personal knowledge.

You should disclose the following in the property disclosure statement:

• Property features that are built-in and will remain with the property and also whether any of these have known defects or malfunctions
• Structural components that have known defects, malfunctions or have had major repairs performed within the last five years
• Property drainage problems
• Roof or other leakage
• Date that chimneys were last cleaned
• Information about heating system
• Information about hot water heater
• Type of water supply and any problems
• Information and any problems with sewerage system
• Frozen water lines
• Average annual utility costs
• Problems with title to the property
• Setbacks or restrictions
• Encroachments
• Environmental concerns
• Soil stability
• Any structural modifications of improvements
• Pests in the structure or past damage from pests
• Pets or animals that have ever been in the house
• Noise or sound disturbances that affect the property
• Lead paint (required under the federal Residential Lead-Based Paint Hazard Reduction Act of 1992 for homes built prior to 1978) and other environmental hazards including asbestos, radon gas or fuel storage tanks on the property

Purchase Agreements

When you've got a serious buyer, you'll receive a written offer to purchase your home, sometimes called a " purchase agreement," which states the finalized terms and conditions for the sale.

You won't have very long to decide whether or not to take the offer or propose a counteroffer so it's important to be informed ahead of time.

Common counter-proposal items include:

• A higher purchase price
• A higher deposit
• Giving buyer less time to remove contingencies
• Excluding certain items from the sale
• Providing you move in time to vacate the house after the sale is closed
• A clause making it a contingency that your attorney approve the contract
• A "liquidated damages clause" that details how much money the buyer will owe you if the buyer backs out of the deal for reasons other than the contingencies listed in the contract

Legal Title Issues

Your Alaska real estate lawyer or title company will investigate the legal title of the property you want to sell, and may find issues you'll need to understand.

In Alaska, for example, an implied easement may be present where a person grants lands to which there is no accessible right-of-way except over her or his land or retains land that is inaccessible except over the land which the person conveys. In such instances a right-of-way is presumed to have been granted or reserved. Such an implied grant or easement in lands or estates exists where there is no other reasonable and practicable way of accessing the property, and it is reasonably necessary for the beneficial use or enjoyment of the part granted or reserved.

Your property may also be subject to a "lien," which is a charge on the property to satisfy a debt or other obligation. A lien encumbers property as long as it exists and has been recorded in the public records.

In Alaska, liens on a piece of property may include:

• Mortgages
• Mechanics' liens
• Judgment liens
• Tax liens

Closing Costs

In Alaska, you can expect to pay for some or all of the following charges - called " closing costs"- at the time you sell your home:

• Broker's commission
• Survey
• Title insurance
• Recorded release of mortgage
• Attorney's fee
• Home inspections

Specific Performance

In Alaska, a seller who agrees to sell a particular property must do so unless the buyer fails to meet all the terms of the purchase agreement. This is called "specific performance," which is a legal action to compel performance of a contract. For this contract remedy, a court can order the parties to complete the contract. The buyer must then deliver the purchase price and the seller must then deliver the deed. If you have second thoughts on a particular sale, you'll want to immediately contact an attorney.