A California listing agent inspects a property and notices no visible issues. However, during the transaction, the buyer's home inspector discovers serious foundation cracks hidden behind a false wall in the basement. The buyer sues the listing agent for failing to discover the defect. Under California law, what is the listing agent's best defense?
Correct Answer
A) The listing agent's duty under Cal. Civil Code §2079 is limited to accessible areas, and a concealed space behind a false wall is not an accessible area
Under Cal. Civil Code §2079, the listing agent's visual inspection duty covers accessible areas only. A defect hidden behind a false wall in a basement is not in an accessible area. If the agent conducted a reasonably competent inspection of accessible areas and found nothing, the agent has satisfied the statutory duty. The concealed nature of the defect is the key defense.
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Key Terms:
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- → 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?
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- → 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?
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- → 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?
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