The broker's duty to conduct a visual inspection of residential property

California's inspection duty

Under Civ. Code § 2079, a broker or salesperson owes a prospective buyer a reasonably competent and diligent visual inspection of residential real property improved with one to four dwelling units, or a manufactured home as defined in Health and Safety Code § 18007. The broker must have a written contract with the seller to find or obtain a buyer, or act in cooperation with that broker to find and obtain a buyer.

Disclose all facts materially affecting value or desirability that the investigation would reveal. Passing along the seller's statements does not perform the licensee's own inspection duty.

Observe and disclose

A listing salesperson inspecting a duplex notices a large ceiling stain. If material, disclose the observation accurately rather than inventing a diagnosis. An appropriate specialist can investigate the cause. A visual inspection does not establish structural soundness.

Inspection limits

Civ. Code § 2079.3 excludes areas reasonably and normally inaccessible to this type of inspection, affirmative inspection of off-site areas, and public records or permits concerning title or use.

For a unit in a planned development, condominium, or stock cooperative, inspection does not extend beyond the unit offered for sale if the seller or broker complies with Civ. Code §§ 4525–4580.

These inspection limits do not erase other disclosure or fiduciary duties or authorize hiding known material facts. Buyers must also exercise reasonable care to protect themselves. Distinguish required inspection, required disclosure, and appropriate further investigation.