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Laws Of Agency Fiduciary DutiesFiduciary_dutiesMEDIUM

A California listing agent inspects a property and notices the garage has been converted to a living space with what appears to be unpermitted plumbing and electrical work. Under Civil Code §2079, what must the agent do?

Correct Answer

A) Disclose the observation to prospective buyers that the garage appears to have been converted to living space, which may involve unpermitted work

Under Civil Code §2079, the agent must disclose material observations from the visual inspection. An apparent garage conversion with modifications suggesting unpermitted work is a material observation that must be disclosed. The agent should note the apparent conversion and advise buyers to investigate permit status with the local building department.

Answer Options
A
Disclose the observation to prospective buyers that the garage appears to have been converted to living space, which may involve unpermitted work
B
Nothing, because permit status is not part of a visual inspection
C
Order a permit search from the city building department before listing the property
D
Report the unpermitted work to the city code enforcement immediately

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Related Topics & Key Terms

Key Terms:

visual_inspectionunpermitted_workgarage_conversiondisclosure
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