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Practice Of Real Estate DisclosuresAgent_visual_inspectionEASY

During a visual inspection of a 1965-built home, a California buyer's agent sees that the label on the electrical service panel shows a 60-amp service. What is the agent's obligation under Civil Code Section 2079 regarding this observation?

Correct Answer

B) Document the observed service capacity, note that it may be insufficient for modern household demands, and recommend the buyer consult a licensed electrician

Civil Code Section 2079 requires the agent to make a reasonably competent and diligent visual inspection of the property and to disclose to the buyer all facts materially affecting value or desirability that the inspection reveals. A rating plainly printed on the service panel is an observed fact, not an expert opinion, and 60 amps is well below the capacity typical of modern households, so the reading is material and must be passed on. The duty ends where expertise begins: the agent reports what the label shows and refers the buyer to a licensed electrician to judge adequacy and any upgrade, rather than evaluating the system or predicting cost.

Answer Options
A
Document the panel's location only; electrical capacity assessment requires a licensed electrician and is outside the agent's scope
B
Document the observed service capacity, note that it may be insufficient for modern household demands, and recommend the buyer consult a licensed electrician
C
Note the panel as a code violation requiring correction prior to close of escrow
D
Disclose the panel's age and brand, but defer all capacity-related observations to the home inspector's report

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Related Topics & Key Terms

Key Terms:

visual_inspectionelectrical_panelservice_capacitybuyer_agentCal_Civil_Code_2079

Related Concepts

Environmental hazards disclosure involves informing buyers about environmental contamination or hazards affecting or potentially affecting a property, including underground storage tanks, contaminated soil, hazardous waste, and proximity to Superfund sites.

Flood zone disclosure requires informing buyers whether a property is located in a designated flood zone as mapped by FEMA. Properties in high-risk flood zones may require mandatory flood insurance.

HOA disclosure requires informing buyers about the existence, rules, fees, financial health, and restrictions of a homeowners association governing the property. This information helps buyers understand their obligations before purchase.

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