A California listing agent conducts a visual inspection of a property and notices water stains on the ceiling but does not mention them in the TDS or to any prospective buyers. A buyer purchases the property and later discovers extensive water damage. Under California Civil Code §2079, what liability does the agent face?
Correct Answer
A) Liability for not disclosing what the visual inspection turned up
The duty is to look and to report what looking revealed. Water stains on a ceiling are exactly that, and the omission is the breach. Other choices: not being a home inspector is why the duty is visual rather than technical, not a reason to say nothing; no separate hiring is required, since the duty comes with the listing; and the buyer's own inspector does not relieve the agent of reporting what was seen.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An agency relationship where the agent agrees to act on behalf of the principal without receiving compensation.
An agency relationship created by the conduct or actions of the parties rather than by a written or oral agreement.
The legal obligation to reveal information that could affect a party's decision to enter into or the terms of a real estate transaction.
More Laws Of Agency Fiduciary Duties Questions
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A broker who fails to promptly disclose their dual agency status is subject to:
A broker’s fiduciary obligation to protect a seller’s confidential information continues:
A broker has an exclusive agency listing on a property. If the owner sells the property, the broker is entitled to:
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Previous Question
Which of the following correctly identifies all six fiduciary duties a California real estate agent owes to their principal, as represented by the acronym OLD CAR?
Next Question
Under California Civil Code §2079, the agent's visual inspection duty includes inspecting all of the following EXCEPT: