A California listing agent has actual knowledge that a property they are listing was previously used as a methamphetamine manufacturing site. The property has not been tested or remediated. Under California law, what is the agent's disclosure obligation?
Correct Answer
B) The agent must disclose their actual knowledge of the prior meth lab use because it is a material fact affecting the property's value and habitability
Under California Civil Code §1102.6a, sellers and their agents must disclose on the Transfer Disclosure Statement (TDS) if they have actual knowledge that the property was used for the manufacture of methamphetamine. Additionally, Health and Safety Code §25400.28 establishes notification obligations for property owners when a site has been identified as a contaminated meth lab. Because unremediated meth contamination materially affects habitability and value, the agent's general duty to disclose known material facts under Civil Code §2079 independently requires disclosure. The agent's actual knowledge triggers this obligation regardless of whether a formal inspection has occurred.
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