A buyer purchases a property in California after both the listing agent and buyer's agent conducted visual inspections and found no issues. After closing, the buyer discovers that the property's sewer line was severely damaged by tree roots, causing sewage backups. The damage was entirely underground with no visible indicators above ground. The buyer sues both agents. Under Cal. Civil Code §2079.3, what defense is available to the agents?
Correct Answer
C) Cal. Civil Code §2079.3 provides that agents are not liable for conditions that are not visible during a reasonably competent and diligent visual inspection of accessible areas
California Civil Code §2079.3 limits agent liability to conditions that could be discovered through a reasonably competent and diligent visual inspection of accessible areas. Underground sewer line damage from tree roots, with no visible above-ground indicators, falls outside the scope of the visual inspection. If no visible signs existed, the agents are protected.
Why This Is the Correct Answer
Why the Other Options Are Wrong
Deep Analysis of This Practice Of Real Estate Disclosures Question
Background Knowledge for Practice Of Real Estate Disclosures
Real World Application in Practice Of Real Estate Disclosures
Common Mistakes to Avoid on Practice Of Real Estate Disclosures Questions
Related Topics & Key Terms
Key Terms:
Related Concepts
A stigmatized property is one that has an undesirable reputation due to events that occurred on the property or nearby, such as a murder, suicide, alleged haunting, or proximity to a registered sex offender. The stigma is psychological, not physical.
An as-is clause in a real estate contract states that the buyer accepts the property in its current condition without requiring the seller to make any repairs. However, an as-is sale does NOT eliminate the seller's obligation to disclose known defects.
Asbestos disclosure involves informing buyers about the presence of asbestos-containing materials (ACMs) in a property. Asbestos was commonly used in construction materials before 1980 and poses health risks when fibers become airborne.
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?
People Also Study
Buyer Representation Agreement
8% of exam
Property Ownership
10% of exam
Land Use Controls and Regulations
8% of exam
Valuation and Market Analysis
10% of exam
Related Articles
Property Flyer Generator — 2026 Guide for U.S. Agents: Step-by-Step + Best Practices
Learn how Property Flyer Generator works and how U.S. real estate agents use it in 2026. Includes setup steps, practical examples, and best-practice tips.
Why Real Estate Exam Notes Stop Helping Once You Avoid Mixed Practice
A topic that feels clear in notes can still fail in practice if recall has not caught up with recognition. If you are searching for real estate exam notes...
How to Review Wrong Answers So Real Estate Practice Questions Actually Help