A California listing agent completes a visual inspection of a property and finds no apparent defects. The agent subsequently receives an unsolicited call from a former tenant who states the property experienced chronic plumbing failures during a tenancy that ended two years ago. The seller, when asked, denies any knowledge of plumbing problems. Which of the following best describes the listing agent's obligation under California law?
Correct Answer
A) Disclose the former tenant's report to prospective buyers as potentially material information, note that it is unverified, and recommend a professional plumbing inspection
Under Cal. Civil Code §2079, a listing agent has a duty to conduct a reasonably competent visual inspection and disclose all material facts affecting value or desirability, regardless of source. The former tenant's report of chronic plumbing issues is potentially material information that could affect a buyer's decision. The agent must disclose it to prospective buyers, clearly noting it is unverified, and recommend the buyer obtain a professional plumbing inspection. The agent cannot suppress third-party information simply because the seller denies it or because the agent cannot personally confirm it.
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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?
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- → At a DRE administrative disciplinary hearing in California, what standard of proof must the Department meet to sustain a finding against a licensee?
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