A California buyer's agent fails to identify a material defect during the required visual inspection of a property. The buyer discovers the defect after close of escrow and wishes to file a negligence claim against the agent. Under California law, what is the statute of limitations for this claim?
Correct Answer
C) Two years from the date the negligent act occurred or the date the defect was discovered or reasonably should have been discovered, whichever is later
Under California Code of Civil Procedure §339, the statute of limitations for negligence — including professional negligence by a real estate agent — is two years. The discovery rule applies, meaning the limitations period begins when the plaintiff discovers, or through reasonable diligence should have discovered, the injury. The clock runs from whichever date is later: the date of the negligent act or the date of discovery, but the outer limit remains two years from that triggering event.
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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.
More Laws Of Agency Fiduciary Duties Questions
A property sold for $450,000. The commission rate was 6%. If the listing broker received 60% of the total commission, how much did the listing broker receive?
An individual who is not employed by the client, but has been delegated agency duties by an agent of the client, is referred to as a(n):
What are the three steps of the agency disclosure in proper chronological order?
An agent needs to disclose a conflict of interest to the affected parties when a principal or service provider in the transaction is the agent’s:
A broker who simultaneously represents the best interests of both opposing parties in a transaction is known as a(n):
- → When showing a listed residential property of one to four dwelling units to potential buyers, the listing broker is required to disclose:
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- → When a broker wants to store documents electronically, the storage method may not allow the final documents to be altered. What method of electronic document storage is required by the Department of Real Estate (DRE)?
- → A broker receives a full price offer on a house they are listing. Before they present the offer to the seller, another broker brings in an all cash offer for $5,000 less. The listing broker is to:
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