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Laws Of Agency Fiduciary DutiesAgency_types_and_creationMEDIUM

A California buyer's agent learns that the listing agent has failed to disclose a known material defect to the buyer. Under California law, what is the buyer's agent's obligation?

Correct Answer

D) Inform the buyer of the known defect and advise the buyer accordingly

Under California law, the buyer's agent has an independent fiduciary duty to the buyer. If the buyer's agent becomes aware of a material defect — regardless of how they learned about it — they must disclose it to the buyer. The buyer's agent cannot rely on the listing agent to make the disclosure; the buyer's agent must act independently to protect the buyer.

Answer Options
A
Nothing, because the disclosure is the listing agent's responsibility, not the buyer's agent's
B
Wait until closing and then file a complaint with the DRE
C
Inform the listing agent privately and let them handle the disclosure
D
Inform the buyer of the known defect and advise the buyer accordingly

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Related Topics & Key Terms

Key Terms:

buyer_agent_dutymaterial_defectindependent_disclosurefiduciary
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