During a visual inspection, a California buyer's agent recognizes that the property contains a Federal Pacific Electric (FPE) Stab-Lok electrical panel — a brand the agent learned about in continuing education as associated with elevated fire risk. The agent is not a licensed electrician. Under Cal. Civil Code §2079, what is the agent's most appropriate course of action?
Correct Answer
B) Note the FPE panel as an observed condition and recommend the buyer obtain an evaluation by a licensed electrician, given known industry concerns about this product
Under Cal. Civil Code §2079, an agent must perform a reasonably competent and diligent visual inspection and disclose conditions that would be apparent to such an agent. Where an agent has acquired knowledge through continuing education that a specific product is widely associated with safety concerns, noting that observation and recommending professional evaluation reflects the reasonably competent standard. While courts have not definitively ruled on brand-specific product knowledge, the prevailing view is that an agent who actually possesses such knowledge and fails to disclose it risks liability — making disclosure the most defensible and professionally appropriate choice.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Radon disclosure involves informing buyers about the presence or potential presence of radon gas in a property. Radon is a naturally occurring radioactive gas that can accumulate in buildings and is the second leading cause of lung cancer.
Fair housing laws apply to a broad range of activities related to housing, including sale, rental, financing, and advertising.
A seller's disclosure statement is a form that sellers complete to inform buyers about the condition and history of the property, including known defects, past repairs, insurance claims, and environmental issues.
More Practice Of Real Estate Disclosures Questions
All exemplify lawful private real estate controls 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)?
A California apartment complex was built in 1985. A wheelchair-bound applicant applies for a ground-floor unit and asks the landlord to widen the doorways to accommodate the wheelchair. Under fair housing law, who is responsible for the cost of the modification?
Blake sold his home to Frank but remained in possession and negotiated a two-year leaseback. Frank did not record the deed. During this two-year period, Blake sold the home to Sam who then recorded the deed. Who owns the home?
Consider a prepaid rental listing service that intends to relocate. When is the listing service required to provide notice of the new address and telephone number to its clients?
- → A California salesperson's personal real estate blog states, 'I closed 50 transactions last year!' The actual number was 32. A competing agent reports this to the DRE. What is the most likely regulatory outcome?
- → A seller is selling a condominium in a California common interest development (CID). In addition to the TDS, which disclosure package is the seller required to provide under California Civil Code §4525?
- → A seller completing the Transfer Disclosure Statement in California must disclose various property conditions. All of the following must be disclosed on the TDS EXCEPT:
- → Under California Civil Code §1102, what is the primary purpose of the Transfer Disclosure Statement (TDS) in a residential sale?
- → A California listing agent receives a third-party NHD report confirming the property is in a Seismic Hazard Zone. The report also includes a supplemental notation indicating the property lies within a tsunami inundation zone per California Geological Survey mapping. The seller asks the agent whether the tsunami risk must be disclosed to the buyer. Which of the following is the most accurate statement of the agent's disclosure obligation under current California law (effective January 1, 2025)?
- → A property in a California Mello-Roos district has a base Proposition 13 property tax of 1% on its assessed value of $600,000, plus a Mello-Roos special tax of $3,200 per year. What is the total annual property tax bill for this property?
- → A California buyer's agent conducts a visual inspection of a property and observes extensive, recently applied caulking around all window frames and along the base of the exterior walls. What is the buyer's agent's most appropriate next step?
- → A California buyer's agent conducts a visual inspection and notices that the property's water heater is not strapped to the wall as required by California law for seismic safety. Under California Health and Safety Code §19211, water heaters must be braced. What should the buyer's agent do?
- → Tenant died in apartment unit two years ago. Landlord discloses death to prospective tenant, mentioning AIDS-related cause. Which statement is correct?
- → A homeowner in a California Mello-Roos district wants to pay off the remaining Mello-Roos bond obligation on their property. The outstanding principal balance of the bonds allocated to the property is $35,000, and the CFD charges a 3% prepayment premium. What is the total payoff amount?
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