Agency
A listing agent discovers that the home has a leaky basement that the seller did not mention. Under California law, the agent must:
AKeep the information confidential to protect the seller's interests
BDisclose the material defect to prospective buyers✓ Correct
COnly disclose if the buyer directly asks
DDisclose only if required by the buyer's lender
Explanation
Under Civil Code §2079, California agents have an affirmative duty to disclose all known material facts that affect the value or desirability of the property, regardless of whether the buyer asks. Concealment of known material defects is both a civil and licensing violation.
Related California Agency Questions
- A subagent owes fiduciary duties to:
- The 'procuring cause' doctrine in real estate refers to:
- The agency relationship between a California broker and salesperson is best described as:
- Which fiduciary duty requires an agent to follow all lawful instructions of the client?
- In California, a listing agent who also brings the buyer and represents both parties must disclose dual agency:
- A buyer's agent discovers that a home has significant foundation problems not disclosed by the seller. What is the agent's duty?
- What is 'ostensible agency' (also called apparent agency)?
- The duty of 'confidentiality' in a California agency relationship requires the agent to:
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