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
Under California law, a real estate agent owes a duty of honest and fair dealing to all parties in a transaction, not only to the agent's own client. Which provision most directly establishes this duty?
A landlord is required to provide a copy of the written lease to the tenant within:
A California-licensed salesperson uses the title 'Real Estate Consultant' on business cards and marketing materials without holding any special certification or designation. Under DRE regulations, this practice is:
Barnard made an offer to buy a vacant residence. The offer was accepted by the seller. Prior to the close of escrow, Barnard requested permission from the broker to enter and make minor repairs to the house. Which of the following is true?
Most common business structure for one individual:
- → A developer proposes a new eight-unit condominium building in San Francisco on a parcel that an NHD report shows lies within a delineated Alquist-Priolo Earthquake Fault Zone. Under the Alquist-Priolo Act, what must happen before the city may approve the project?
- → At a DRE administrative disciplinary hearing in California, what standard of proof must the Department meet to sustain a finding against a licensee?
- → The Transfer Disclosure Statement requires sellers to disclose various known property conditions under California Civil Code §1102 et seq. All of the following must be disclosed on the TDS EXCEPT:
- → California's Holden Act (Housing Financial Discrimination Act, HSC §35800) addresses lending discrimination. All of the following lending practices are prohibited by the Holden Act EXCEPT:
- → A salesperson receives a $2,000 cash earnest money deposit from a buyer during a property showing. Under California trust fund rules, what is the salesperson's required next step?
- → A California salesperson receives a $3,000 earnest money deposit from a buyer on Tuesday morning. The salesperson does not deliver the funds to the broker until the following Monday. Under California trust fund rules, has a violation occurred?
- → A California property owner in a Mello-Roos CFD discovers that the bond proceeds were mismanaged by the CFD administrator and the planned community park was never built, even though property owners have been paying the special tax for 10 years. What legal recourse does the property owner have?
- → The Real Estate Commissioner may discipline a licensee for the conduct described in Business and Professions Code §§10176 and 10177. Which of the following would NOT be grounds for disciplinary action?
- → Which of the following correctly describes California's mandatory fair housing continuing education requirement for real estate license renewal?
- → The main purpose of the Uniform Commercial Code is to:
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