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Laws Of Agency Fiduciary DutiesFiduciary_dutiesMEDIUM

A prospective buyer directly asks a California listing agent whether anyone has died in the home. The agent knows a murder occurred there 18 months ago. Which of the following best describes the agent's legal obligation?

Correct Answer

A) The agent must answer the question truthfully once it has been asked directly

Civil Code section 1710.2 shields an agent from a duty to volunteer a death older than three years. It does not license a false answer: once the buyer asks directly, the agent answers truthfully, and this death is 18 months old in any case. Other choices: deaths can be material, which is why the statute needed to say when they are not; a criminal conviction is not the test; and 1710.2 permits silence, it does not prohibit speech.

Answer Options
A
The agent must answer the question truthfully once it has been asked directly
B
The agent has no obligation to disclose because deaths on a property are never material facts under California law
C
The agent must disclose only if the death resulted in a criminal conviction
D
The agent may decline to answer because §1710.2 prohibits agents from volunteering information about deaths on a property

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Related Topics & Key Terms

Key Terms:

death_disclosurehomicidethree_year_ruledirect_inquiry

Related Concepts

An agency relationship created by a clear, explicit agreement between the principal and agent, either orally or in writing.

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.

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