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.
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Related Topics & Key Terms
Key Terms:
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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At a DRE administrative disciplinary hearing in California, what standard of proof must the Department meet to sustain a finding against a licensee?
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- → A California broker places an ad that states: 'As seen on HGTV — our agents are the best in the state!' None of the broker's agents have appeared on HGTV. Under California law, this advertisement:
- → Under California law, several disclosures relate to property taxes and special assessments. All of the following must be disclosed to a buyer EXCEPT:
- → A landlord must give a month-to-month tenant how many days' notice to terminate the tenancy in California (for tenancies less than one year)?
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- → A salesperson receives a $2,000 cash earnest money deposit from a buyer during a property showing. Under Commissioner's Regulation 2832, what is the salesperson's required next step?
- → A commission check payable to a California brokerage arrives after a transaction closes. The salesperson who closed the deal asks the broker to endorse the check directly to the salesperson rather than processing it through the brokerage. Under DRE regulations, what is the broker's correct course of action?
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A property owner transfers their residence into a revocable family trust for estate planning purposes, with the transferors named as beneficiaries. Which of the following correctly describes the TDS requirement for this transfer under California law?
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A California seller is aware that their single-family home was previously used as a methamphetamine manufacturing site. The property has since been cleaned, but no certificate of clearance has been issued. Under California Health and Safety Code §25400.28, what is the seller's disclosure obligation?
