Material facts, inspections, and reports

Facts, inspections, and informed decisions

A material fact affects a property's value or desirability. In California, known material defects that a buyer does not know and would not reasonably observe should be disclosed. Concealing a recurring leak is not excused by an as is sale.

Observe, disclose, investigate

Civ. Code § 2079 requires a reasonably competent and diligent visual inspection in covered sales of residential property with one to four dwelling units and manufactured homes. It applies to the listing broker and a broker cooperating to find a buyer, and their salespersons. Disclose material facts the inspection would reveal. Describe a ceiling stain; do not diagnose a hidden plumbing failure without expertise.

Specialist reports complement the agent's work. Review a report's scope, findings, exclusions, inaccessible areas, and recommendations. A home inspection or pest report does not promise discovery of every concealed defect. A recommendation for foundation evaluation calls for qualified follow-up before the applicable contractual decision deadline. Report delivery, repair completion, and verification of repairs are different events.

California's particular rules

Under Civ. Code § 1710.2, an occupant's death more than three years before the offer to purchase, lease, or rent need not be disclosed. Neither an occupant's HIV status nor death from AIDS-related complications requires disclosure. The protection does not immunize an owner or the owner's agent from intentional misrepresentation in response to a direct inquiry about deaths. Physical-condition disclosure obligations remain.

The current registered sex offender database notice under Civ. Code § 2079.10a directs buyers to the Department of Justice website. Delivery does not erase other legal duties.

Health & Safety Code § 19211 requires covered water heaters to be braced, anchored, or strapped against earthquake movement and requires a seller's written compliance certification. Under Health & Safety Code § 13113.8, local smoke-alarm ordinances must meet the statutory minimum; its definition of single-family dwelling includes one- and two-unit dwellings but excludes manufactured homes, mobilehomes, and commercial coaches as defined there. These compliance matters differ from a general property inspection.

Common interest development documents can reveal assessments, restrictions, and financial issues beyond a physical inspection. The billing form in Civ. Code § 4528 permits sellers to provide current documents they possess at no cost and does not require purchase of every listed document.