A buyer in Walnut Creek enters into a C.A.R. RPA and the seller provides the TDS as required under Cal. Civil Code §1102. However, the seller's agent discovers that the seller intentionally concealed a known plumbing defect on the TDS. The buyer has already removed the inspection contingency. Under California law, what is the seller's agent's obligation?
Correct Answer
A) The agent must disclose the known defect to the buyer because the agent's duty under Cal. Civil Code §2079 is independent of the seller's disclosure
Under California Civil Code §2079, the listing agent has an independent duty to conduct a reasonably competent visual inspection and disclose material facts affecting the property's value or desirability. If the agent knows the seller concealed a defect, the agent must disclose it to the buyer regardless of what the seller reported on the TDS.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Offer and acceptance is the process by which one party proposes specific terms for a contract and the other party agrees to those exact terms, creating mutual assent. This mutual agreement, also called a meeting of the minds, is an essential element of every valid contract.
An option contract gives one party the exclusive right, but not the obligation, to purchase or lease a property at a specified price within a specified time period. The buyer pays option consideration to keep the option open.
A purchase agreement is a legally binding contract between a buyer and seller that outlines the terms and conditions for the sale of real property. It is also commonly called a sales contract, purchase and sale agreement, or earnest money agreement.
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