A California dual agent performs a walkthrough of a listed property but spends only a few minutes in the garage and does not note visible water stains on the walls or discoloration on the ceiling. After closing, the buyer discovers severe mold. The seller knew about the mold but never disclosed it. The buyer sues the dual agent. Which of the following best describes the dual agent's potential liability?
Correct Answer
B) Liability under Civil Code 2079 for failing to make a reasonably competent visual inspection of the property
Civil Code section 2079 puts an affirmative duty on the agent to make a reasonably competent and diligent visual inspection of accessible areas and to disclose what it turns up. A few minutes in the garage past visible water stains is not that, and the buyer's losses flow from the omission. Other choices: walking through does not discharge a duty defined by competence rather than by attendance; the seller's own failure to disclose is concurrent, not superseding, so it does not break causation; and section 2079 does not require actual knowledge - the duty is to look.
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Related Topics & Key Terms
Key Terms:
Related Concepts
In real estate, a client is someone to whom the agent owes fiduciary duties through an agency relationship, while a customer is a third party to whom the agent owes only honesty and fair dealing.
An arrangement where a brokerage assigns separate agents within the firm to represent the buyer and seller in the same transaction, allowing each client to have dedicated representation.
A situation where a single agent or brokerage represents both the buyer and the seller in the same real estate transaction.
More Laws Of Agency Fiduciary Duties Questions
Under California law, the agency disclosure requirements apply to which types of property?
Under California law, when must a buyer's agent give the agency disclosure form to the buyer?
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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