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 negligent failure to conduct a reasonably competent visual inspection of all accessible areas
Under California Civil Code §2079, the agent has a duty to conduct a reasonably competent and diligent visual inspection of ALL accessible areas. The backyard is an accessible area. Skipping the inspection due to rain and then certifying 'no defects observed' is negligent. The agent should have either returned to complete the inspection or noted on the AVID that the backyard was not inspected due to weather conditions.
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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
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An agent needs to disclose a conflict of interest to the affected parties when a principal or service provider in the transaction is the agent’s:
A broker who simultaneously represents the best interests of both opposing parties in a transaction is known as a(n):
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- → A broker receives a full price offer on a house they are listing. Before they present the offer to the seller, another broker brings in an all cash offer for $5,000 less. The listing broker is to:
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