A California buyer's agent fails to note a material defect during the visual inspection required by Civil Code §2079. The buyer discovers the defect eight months after close of escrow and wants to sue the agent for breach of that inspection duty. What limitations period applies?

Correct Answer

C) Two years from the date of possession — recordation, close of escrow, or occupancy, whichever occurs first

Civil Code §2079.4 fixes the outside limit for an action based on the §2079 visual-inspection duty: in no event may the action be commenced more than two years from the date of possession, which the statute defines as the date of recordation, the date of close of escrow, or the date of occupancy, whichever occurs first. Discovering the defect later does not extend that limit, which is what makes this duty different from the general negligence rules candidates usually reach for. A buyer who learns of a problem eight months after closing still has time here, but a buyer who learns of one three years later does not.