A buyer's agent represents a purchaser in a California residential transaction but never conducts a visual inspection of the property and leaves the agent section of the Transfer Disclosure Statement blank at closing. Which of the following best describes the legal consequence of the buyer's agent's failure?
Correct Answer
A) The buyer's agent may face DRE disciplinary action and civil liability to the buyer for breach of the statutory inspection duty under Civil Code §2079
Under California Civil Code §2079, both the listing agent and the buyer's agent have an independent, non-delegable statutory duty to conduct a reasonably competent and diligent visual inspection of the property and disclose material facts affecting value or desirability. This duty cannot be transferred to the other agent by default or omission. A buyer's agent who fails to perform this inspection and complete the corresponding TDS section has violated a statutory obligation, exposing them to DRE disciplinary action for misconduct and civil liability to the buyer for any damages resulting from defects a competent inspection would have revealed.
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Previous 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?
Next Question
A California seller sells a 2-unit duplex. The seller completes the TDS but mistakenly marks 'No' for the question about whether the property has had any insurance claims in the past five years. In fact, the seller filed a water damage claim two years ago and received $15,000 from the insurance company. The buyer discovers the claim history after closing. What is the seller's potential liability?