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Practice Of Real Estate DisclosuresTransfer_disclosure_statementHARD

A California listing agent inspects a property in Long Beach and observes water stains on the ceiling and a water heater missing the required earthquake strapping. The seller insists the stains are from a spill, not a leak. Which statement BEST describes the agent's TDS obligation?

Correct Answer

B) The agent must disclose both the water stains and the missing earthquake straps on the TDS regardless of the seller's explanation

Under California Civil Code §2079, the agent must disclose all material facts discovered during the visual inspection of accessible areas. Both the water stains and missing earthquake straps are observable conditions that must be reported. The agent cannot accept the seller's explanation in lieu of disclosure.

Answer Options
A
The agent should disclose the water stains but earthquake strapping is a building code issue outside the TDS scope
B
The agent must disclose both the water stains and the missing earthquake straps on the TDS regardless of the seller's explanation
C
The agent may accept the seller's explanation for the stains and need only note the missing earthquake strapping
D
The agent should recommend repairs for both issues but is not required to disclose them if the seller agrees to fix them before closing

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Related Topics & Key Terms

Key Terms:

TDSvisual_inspectionwater_stainsearthquake_strappingCal_Civil_Code_2079

Related Concepts

Many states and localities have fair housing laws that expand upon the protections offered by the federal Fair Housing Act.

A stigmatized property is one that has an undesirable reputation due to events that occurred on the property or nearby, such as a murder, suicide, alleged haunting, or proximity to a registered sex offender. The stigma is psychological, not physical.

An as-is clause in a real estate contract states that the buyer accepts the property in its current condition without requiring the seller to make any repairs. However, an as-is sale does NOT eliminate the seller's obligation to disclose known defects.

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