A California real estate agent advertises a property as 'walking distance to the beach' when the property is actually 3 miles from the ocean. A buyer purchases the property based partly on this representation. Under California law, what liability does the agent face?
Correct Answer
B) Potential liability for misrepresentation because 3 miles is not reasonably considered walking distance and the statement could mislead a reasonable buyer
While some subjective marketing language is acceptable as puffing, claiming a property is 'walking distance to the beach' when it is 3 miles away is a material misrepresentation that could mislead a reasonable buyer. Under Cal. B&P Code §10176(a), the agent may face disciplinary action and civil liability for misrepresentation.
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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.
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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?
- → 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?
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