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 to buyers that the garage appears converted and may be unpermitted
The duty is to disclose what a reasonably competent visual inspection reveals, in words the agent can stand behind - it appears converted, it may not be permitted. Other choices: what is visible is visible, so permit status seen with the eyes is squarely within the inspection; ordering a permit search is not required of the agent and does not replace telling buyers what was seen; and reporting the owner to code enforcement is not the agent's role and would breach the duty owed to the client.
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Related Topics & Key Terms
Key Terms:
Related Concepts
In real estate, a client is someone to whom the agent owes fiduciary duties through an agency relationship, while a customer is a third party to whom the agent owes only honesty and fair dealing.
An arrangement where a brokerage assigns separate agents within the firm to represent the buyer and seller in the same transaction, allowing each client to have dedicated representation.
A situation where a single agent or brokerage represents both the buyer and the seller in the same real estate transaction.
More Laws Of Agency Fiduciary Duties Questions
Under California law, the agency disclosure requirements apply to which types of property?
Under California law, when must a buyer's agent give the agency disclosure form to the buyer?
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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