A buyer's agent discovers that a property for sale has a history of a recent death on the premises due to natural causes. The seller has not disclosed this information. In California, what is the buyer's agent's obligation regarding this discovery?
- AThe agent has no obligation to disclose, as deaths from natural causes are not material facts.
- BThe agent should advise the buyer to perform their own due diligence to uncover such information.
- CThe agent must only disclose if the death occurred within the last three years.
- DThe agent must disclose this information to the buyer, as it is a material fact that could affect the buyer's decision.
Show answer & explanationAnswer & explanation
Correct answer: D. The agent must disclose this information to the buyer, as it is a material fact that could affect the buyer's decision.
In California, a death on the property, regardless of cause, if known to the agent, is considered a material fact that must be disclosed to a buyer. While sellers are only required to disclose deaths within the last three years, agents have a broader duty to disclose any known material facts that could affect a buyer's decision, even if outside the seller's specific statutory disclosure period for deaths.
Why the other options are wrong
- A. Any death on the property, if known, is generally considered a material fact to a buyer in California and must be disclosed by the agent.
- B. While buyers should do due diligence, the agent cannot withhold known material facts and shift the entire burden to the buyer.
- C. The three-year rule applies to the *seller's* specific statutory disclosure requirement for deaths, but an agent's general duty to disclose known material facts is broader.
Agent's Duty to Disclose Deaths (CA)
In California, a real estate agent who is aware of a death on a property, regardless of cause, has a duty to disclose this information to a prospective buyer as a material fact, even if the seller's statutory disclosure period (3 years) has passed.
- Agent's duty is broader than seller's statutory duty.
- Any known death can be considered a material fact to a buyer.
- Homicide, suicide, or natural causes equally require disclosure if known.
Memory trick: An agent knows about a death? Disclose it! The buyer's decision is paramount, even beyond the seller's three-year rule.