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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 truthfully because the buyer asked directly, and the three-year window in §1710.2 removes the agent's liability shield for non-disclosure of that death

California Civil Code §1710.2 functions primarily as a liability shield: it provides that a seller or agent is not liable for failing to disclose a death that occurred more than three years before the buyer's offer. Critically, this protection does not apply to deaths within the three-year window, meaning the agent cannot rely on §1710.2 to avoid liability for concealing the 18-month-old murder. Additionally, when a buyer directly and specifically asks about deaths on the property, the agent is independently obligated to answer truthfully under general fraud and misrepresentation principles (Civil Code §1710) and the fiduciary duty of honesty. Knowingly providing a false or misleading answer to a direct question constitutes fraudulent concealment regardless of the timeframe. Both the removal of the §1710.2 safe harbor and the direct inquiry independently require truthful disclosure here.

Answer Options
A
The agent must answer truthfully because the buyer asked directly, and the three-year window in §1710.2 removes the agent's liability shield for non-disclosure of that death
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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