A California listing agent completes the Agent Visual Inspection Disclosure (AVID) form and notes 'no defects observed.' However, the agent actually skipped inspecting the backyard because it was raining. A buyer later discovers a large sinkhole in the backyard. Under California law, what liability does the agent face?
Correct Answer
B) Liability for failing to make a reasonably competent visual inspection
Writing no defects observed after an inspection cut short by rain records a conclusion the agent did not earn. The duty is a reasonably competent visual inspection of accessible areas, and weather postpones it rather than excusing it. Other choices: rain is a reason to come back; whether a sinkhole is visible is the question the inspection was supposed to answer; and the seller's knowledge is a separate duty.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The highest legal obligation of trust and confidence owed by an agent to their principal, requiring the agent to act solely in the principal's best interest.
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.
More Laws Of Agency Fiduciary Duties Questions
Under California law, the agency disclosure requirements apply to which types of property?
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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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