A California listing agent conducts a visual inspection and notices no visible defects. However, the agent knows from a previous transaction two years ago that the neighboring property had serious soil contamination that extended to the boundary of the current listing. The seller is unaware of this issue. Under California law, what is the listing agent's obligation?
Correct Answer
D) The agent must disclose the known soil contamination risk to the buyer as a material fact that may affect the property
Under California Civil Code §1102.6 and the agent's general duty of honest dealing, an agent who has actual knowledge of material facts that may affect the property must disclose them. Soil contamination from a neighboring property that may extend to the listed property is a material fact affecting value and habitability. The agent's knowledge from a prior transaction triggers disclosure.
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Previous Question
A buyer receives a Transfer Disclosure Statement via personal delivery on a Thursday. Under California Civil Code §1102.3, by what day must the buyer exercise the right to rescind?
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Under California law, several parties have responsibilities regarding the Transfer Disclosure Statement. All of the following parties have a duty to complete a section of the TDS EXCEPT: