EnvironmentalIntermediateCalifornia Exam

A real estate licensee who fails to disclose a known environmental hazard on a listing may face liability under which California law?

ACivil Code §2079 (duty to conduct a visual inspection and disclose)Correct
BBusiness and Professions Code §10131 only, as required under standard hazard disclosure practice
CCERCLA — federal liability only, consistent with California environmental regulations
DCalifornia Health and Safety Code §17920 only, per standard environmental compliance procedure

Why Civil Code §2079 (duty to conduct a visual inspection and disclose) Is Correct

Answer A: Civil Code §2079 (duty to conduct a visual inspection and disclose)

Civil Code §2079 imposes a duty on real estate licensees to conduct a reasonably competent and diligent visual inspection of residential property and disclose all material facts — including observable environmental conditions — to the buyer.

Exam Tip: Environmental

Environmental questions test knowledge of hazards like asbestos, lead-based paint, radon, and mold. Know the disclosure requirements and when a professional inspection is required. CERCLA liability is strict, joint, and several.

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