A buyer's agent in California reads the preliminary title report and learns that the mineral rights on a residential property were severed from the surface estate decades ago and are held by a third party. Nothing about the severance is visible on the property itself. What is the agent's obligation to the buyer?
Correct Answer
A) Disclose the severance in writing as a material fact affecting the property's value or desirability
The inspection duty in Civil Code §2079 is a visual one, and §2079.3 states that the representation does not include an inspection of public records or permits concerning the title or use of the property. That limit explains why a title severance would not be found through the inspection, but it does not license silence about something the agent actually knows. The agency disclosure required by Civil Code §2079.16 and ordinary agency principles impose a duty to disclose all facts known to the agent that materially affect the value or desirability of the property and are not known to, or within the diligent attention of, the parties. A severed mineral estate in a third party's hands can affect subsurface access, surface use, financing, and resale, so the agent discloses it and documents the disclosure.
Why This Is the Correct Answer
Why the Other Options Are Wrong
Deep Analysis of This Property Ownership Land Use Controls Question
Background Knowledge for Property Ownership Land Use Controls
Real World Application in Property Ownership Land Use Controls
Common Mistakes to Avoid on Property Ownership Land Use Controls Questions
Related Topics & Key Terms
Key Terms:
Related Concepts
Wetlands protection refers to federal and state regulations that restrict development on wetlands — areas where water covers the soil or is near the surface for part of the year. The primary federal authority is the Clean Water Act enforced by the Army Corps of Engineers.
Zoning is the government's division of land into districts with specific permitted uses such as residential, commercial, industrial, or agricultural. It is the most common exercise of police power over private property.
Building codes are government regulations that set minimum standards for construction, materials, design, and safety in buildings. They protect public health and safety by ensuring structures are built to acceptable standards.
More Property Ownership Land Use Controls Questions
Which of the following words is NOT associated with the others in the group?
An owner sold a parcel of real estate to a buyer with the stipulation that the buyer was not allowed to sell alcohol from the premises. The buyer sold the property 10 years later to a buyer who converted the building into a convenience store that sold beer. Should the owner or owner’s heirs claim a right of re-entry, what would be the basis for the lawsuit?
Which of these activities can the owner of a life estate NOT do?
The highest form of property ownership in the United States is:
In California, which form of co-ownership is available ONLY to married couples or registered domestic partners?
- → A plot plan is drawn by an architect to show:
- → Diana lives in her California home, which has a fair market value of $900,000 and a mortgage balance of $500,000. Assume the homestead exemption that applies to her is $300,000. A judgment creditor obtains a court order for a forced sale. What is the MOST likely outcome?
- → A developer in California proposes building in an area designated as a 'special flood hazard area' on the FEMA flood map. Under California law, what additional requirement applies to development in this area?
- → Ceiling tiles that drop into a metal frame attached to a building are considered
- → A California homeowner contracts with a general contractor for a $500,000 home renovation. The homeowner properly records a notice of completion on July 1. A subcontractor who served a valid preliminary 20-day notice records a mechanics' lien on September 5. Under California law, is the mechanics' lien valid?
- → Under the Davis-Stirling Act, a California HOA wants to increase regular monthly assessments by 25% for the upcoming year. What approval is required?
- → A California landowner divides a 10-acre parcel into six lots and sells two of them without first recording the map the Subdivision Map Act requires. Under the Map Act, what are the consequences of those sales?
- → Under California's Permit Streamlining Act, a local agency must approve or deny a development project application within specified timeframes. If the agency fails to act within the deadline for a project that requires an EIR, what happens?
- → A California deed reads: 'I grant to John Smith the property at 123 Main St, Sacramento, CA.' No additional language specifies the type of estate being conveyed. What estate does John receive?
- → A California city enacts a zoning ordinance that eliminates all economically beneficial use of a private property. The owner files a takings claim. Which of the following correctly states the city's legal obligation?
People Also Study
Buyer Representation Agreement
8% of exam
Property Ownership
10% of exam
Land Use Controls and Regulations
8% of exam
Valuation and Market Analysis
10% of exam
Related Articles
Property Flyer Generator — 2026 Guide for U.S. Agents: Step-by-Step + Best Practices
Learn how Property Flyer Generator works and how U.S. real estate agents use it in 2026. Includes setup steps, practical examples, and best-practice tips.
Real Estate Exam Property Ownership & Title (2026): Deeds, Liens, Encumbrances + Practice Questions
Understand deeds, liens, encumbrances, and ownership types with exam-style practice questions and traps.
Why Real Estate Property Description Questions Get Easier Once You Sort Boundaries, Measurements, and Legal Meaning
A topic that feels clear in notes can still fail in practice if recall has not caught up with recognition. If you are searching for real estate property...