A California dual agent discovers during a property inspection that the home has a significant foundation crack that the seller did not disclose. What is the dual agent's obligation?
Correct Answer
C) Disclose the foundation issue to the buyer because material defects must be disclosed regardless of dual agency status
Under California Civil Code §2079 and §2079.16, a dual agent has a duty to disclose material facts affecting the value or desirability of the property to both parties. A significant foundation crack is a material defect that must be disclosed to the buyer. The duty to disclose material defects overrides any confidentiality that might otherwise protect the seller's interests.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An agency relationship created when a principal approves or accepts an agent's previously unauthorized actions, effectively granting authority after the fact.
The legal requirement for real estate agents to inform all parties about who they represent in a transaction, typically provided at first substantive contact.
A legal relationship in which one person (the agent) is authorized to act on behalf of another person (the principal) in business transactions with third parties.
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