A real estate broker or agent owes a prospective purchaser of a residential real property comprising of 1 to 4 units, a duty to conduct a reasonably competent and diligent visual inspection of the property offered for sale and to disclose to that prospective purchaser all facts materially affecting the value or desirability of the property that an investigation would reveal, if that broker has a written contract with the seller to find or obtain a buyer or is a broker who acts in cooperation with that broker to find and obtain a buyer. See Cal. Civ. Code § 2079(a). However, there are some limitations with respect to the extent of that inspection. The standard of care owed by a broker under California law is the degree of care that a reasonably prudent real estate broker or agent would exercise and is measured by the degree of knowledge through education, experience, and examination, required to obtain a broker/agent license. See Cal. Civ. Code § 2079.2.
These duties to disclose carried by the selling broker/agent do not relieve a buyer or prospective buyer of the duty to duty to exercise reasonable care to protect himself or herself, including those facts which are known to or within the diligent attention and observation of the buyer or prospective buyer. See Cal. Civ. Code § 2079.5.
The scope of inspection is also somewhat limited in that it does not involve or include an inspection of areas that are reasonably and normally inaccessible to such an inspection, nor an affirmative inspection of areas off the site of the subject property or public records or permits concerning the title or use of the property. See Cal. Civ. Code § 2079.3.
Prospective buyers should also be aware that if a breach or nondisclosure within the scope of duties outlined under Section 2079 et. seq., is discovered, the buyer has two years from the date of possession, which means the date of recordation, the date of close of escrow, or the date of occupancy, whichever occurs first, in order to bring an action against the selling agent/broker. See Cal. Civ. Code § 2079.4. This two year statute does not affect the 3 year statute for intentional fraud, nor does it affect the 4 year statute for breach of fiduciary duty claims.
It is also important to note that these rules regarding an agent’s duty to disclose defects visible to him/her during escrow, do not diminish the duty of disclosure owed to buyers by agents from liability for their conduct in connection with acts governed by these rules or for any breach of fiduciary duty or a seller’s legal duty of disclosure. See Cal. Civ. Code § 2079.24.