A California listing agent receives a third-party NHD report stating the property is NOT in any of the six statutory hazard zones. However, the agent has personal knowledge from living in the area that the neighborhood experienced significant flooding two years ago due to a nearby creek overflowing. Under California law, what is the agent's obligation?
Correct Answer
D) Disclose the agent's personal knowledge of the flooding history to the buyer as a material fact, in addition to providing the NHD report
While the good-faith reliance provision of Cal. Civil Code §1103.4 protects the agent regarding the NHD report itself, the agent still has an independent duty under Cal. Civil Code §2079 and general agency law to disclose material facts known to the agent. Personal knowledge of recent flooding is a material fact that must be disclosed separately from the NHD.
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A buyer in Los Angeles asks her agent about the difference between the TDS and the NHD. Which statement BEST explains the distinction?
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A property is located in a Seismic Hazard Zone designated for earthquake-induced landslide under the Seismic Hazards Mapping Act. Which of the following statements accurately describes the legal and practical significance of that designation for a prospective buyer?