A dual agent in California is handling the sale of a residential property. The seller tells the dual agent about a recurring drainage problem in the backyard. The dual agent owes fiduciary duties to both the buyer and the seller. Regarding the drainage issue, what must the dual agent do?
Correct Answer
C) Disclose the drainage issue to the buyer, because the duty to disclose material facts applies regardless of the dual agency relationship
In California, a dual agent must disclose all known material facts to both parties. The drainage problem is a material defect that must be disclosed to the buyer regardless of the agency relationship. The duty of honest dealing and disclosure of material facts cannot be overridden by dual agency obligations.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Mold disclosure involves informing buyers about the presence of mold or conditions that are conducive to mold growth in a property. While no federal mold disclosure law exists, many states require disclosure of known mold issues.
A property condition disclosure is a written statement by the seller detailing the known condition of the property, including defects, repairs, and issues with major systems. Most states require sellers to complete this form.
Protected classes are groups of people who are legally shielded from discrimination based on specific characteristics.
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Previous Question
Martin, a real estate salesperson in California, is listing a home for sale. The seller asks Martin whether the property's proximity to a busy airport needs to be disclosed on the TDS. Under California disclosure law, what is the correct answer?
Next Question
A California seller transfers a single-family home to a buyer. The Seller Property Questionnaire (SPQ) is provided along with the TDS. The buyer's agent notices that the seller answered 'No' to a question about neighborhood nuisances on the SPQ, but the listing agent's TDS section notes heavy traffic noise on the street. What should the buyer's agent do?