Service Without EmploymentDuty to Prospective Purchaser of Real Property
Section § 2079
Real estate brokers and salespeople in California must carefully inspect residential properties with up to four dwelling units or a manufactured home before a sale. If they have a contract with the seller, they need to tell potential buyers about any issues that could affect the property's value or appeal, noticeable through a thorough inspection. They also must follow professional conduct standards set by related rules and regulations.
Section § 2079.1
This law says that rules about the sale of homes with one to four units also apply when there is a lease with an option to buy, a long-term lease of land with homes, or certain property sales contracts.
Section § 2079.2
A real estate broker in California is expected to act with the same level of care and competence as any other careful and knowledgeable real estate professional. This means they should have the education, experience, and understanding needed to get their real estate license in the state.
Section § 2079.3
This law section explains that when someone inspects a property, they don't have to check areas that are usually hard to access. They also don't need to look at things like public records or permits, or areas not part of the property. If it's part of a planned development, condo, or stock cooperative, the inspection can be limited to just the unit that's for sale.
Section § 2079.4
If you believe someone didn't fulfill their duty according to this law, you have no more than two years to start a legal claim. The two-year countdown begins from either when you officially take possession of the property, when the sale closes, or when you move in, whichever happens first.
Section § 2079.5
Even if there are requirements for sellers or agents to disclose certain information about a property, buyers still have a responsibility to look out for themselves. This means they should do their own research and be aware of obvious facts about the property.
Section § 2079.6
This law says it doesn’t apply when a property sale has to follow certain rules about giving a public report to the buyer unless the property was lived in before. It also doesn’t apply to sales that can skip the public report if the property wasn’t previously occupied.
Section § 2079.7
When a buyer receives a consumer information booklet related to the sale of real estate or manufactured homes, sellers and brokers aren't obligated to provide extra details about common environmental hazards, as the booklet is considered enough. However, this rule doesn't change the existing responsibilities of sellers or brokers to disclose known environmental hazards affecting the property.
Section § 2079.8
If a home buyer is given a specific earthquake safety guide during a property sale, the seller or real estate broker doesn't have to give more details about earthquake risks since the guide is considered enough to inform the buyer about geologic and seismic dangers. However, this doesn't change any existing responsibilities the seller or broker has to disclose known hazards on the property.
Section § 2079.9
This law says that if a seller gives the buyer a guide about earthquake safety related to commercial properties, they don't have to provide more information about earthquake and geology risks. The guide is enough to inform the buyer about potential issues and solutions. However, the law also makes clear that this doesn't change the seller's or agent's responsibilities to inform the buyer about any known hazards on the property.
Section § 2079.10
This section explains that if a buyer receives an informational booklet about home energy ratings or water conservation when buying a property, the seller or broker doesn't have to give more details beyond what's in the booklet. The booklet is considered enough to inform the buyer about these programs. However, sellers and brokers still have to follow all other legal responsibilities they have to disclose certain information about the property, as required by other laws.
Section § 2079.10
If you’re selling a single-family home in California after July 1, 2013, the sales contract must include a notice about gas and hazardous liquid pipelines. This notice tells buyers they can find pipeline locations online through a Department of Transportation website. Once this notice is given, sellers and brokers don't have to provide more details about nearby pipelines. However, sellers and brokers still have existing obligations under other laws when selling property.
Section § 2079.10
This law requires certain notices in rental agreements and home sales contracts about a database of registered sex offenders. For agreements made after July 1, 1999, the notice must be in at least 8-point type. Contracts from 1999 to early 2006 have different notice requirements. After April 1, 2006, contracts must include information directing people to a state website where they can find information on registered sex offenders. The seller or lessor doesn't need to provide additional information beyond the notice, nor does it create liability for them. However, this does not change any other legal duties they might have.
Section § 2079.11
This law states that, generally, consumer information brochures, like those about real estate or energy efficiency, should be freely available to the public. However, there's an exception for the Seismic Safety Commission's Earthquake Safety Guide, which can be sold to the public at cost. Vendors can reproduce and publish this guide for free as long as they get the content approved by the commission first.
Section § 2079.12
This section explains that a previous court case, Easton v. Strassburger, left real estate agents unclear about their responsibilities because the decision was vague. This caused issues with insurance. The law aims to clarify those duties, make them clear for real estate agents, and ensure that there is professional liability insurance available for customers. This move clarifies what real estate agents are expected to do without changing their existing duties, allowing courts to interpret these requirements based on common sense and previous legal practices.
Section § 2079.13
This law section defines key terms used in real estate transactions. It explains roles like 'agent', who handles property sales, acts for both buyer and seller, or works with brokers; 'buyer', anyone looking to purchase property, including lessees; and 'seller', the person transferring property. It also defines what counts as 'real property', covering various property types except for single-family homes, some mobile homes, and vacant land. 'Dual agent' refers to agents working for both buyers and sellers, while 'listing agreement', 'offer to purchase', 'listing price' and 'offering price' outline components of buying and selling processes. Terms related to property type distinctions, like 'commercial real property', are included, along with agreements like 'buyer-broker representation'.
Section § 2079.14
This law mandates that in real estate transactions, a specific disclosure form must be given to both the buyer and the seller at key points. The seller's agent must provide this form to the seller before signing a listing agreement. The buyer's agent must give the form to the buyer before signing a buyer-broker agreement and before the buyer makes an offer to purchase. If the purchase offer isn't created by the buyer's agent, the form should be delivered by the next business day. Agents must also get a signed acknowledgment from the buyer or seller to confirm receipt, with some exceptions.
Section § 2079.15
If a seller or buyer won't sign a receipt as required, the agent must write down the details, including the date and their signature, explaining why the person refused.
Section § 2079.16
When you're dealing with real estate transactions in California, it's important to know what kind of relationship you have with your real estate agent. The disclosure form you receive will explain whether the agent is representing only the seller, only the buyer, or both. Agents have different responsibilities depending on this relationship, such as being honest and disclosing important property information. However, they don't need to reveal confidential details unless it affects their duties. Buyers and sellers also need to protect their own interests and might need to seek additional professional advice for legal or tax issues. Make sure any documents you sign accurately reflect your understanding of your relationship with the agent.
To the Seller:
To the Buyer and the Seller:
To the Buyer:
To the Buyer and the Seller:
Section § 2079.17
In a real estate transaction, the agent working for the buyer or the seller must clearly let both parties know as soon as possible whether they represent only one side or both sides (that is, whether they are a dual agent). This information must be documented either in the property contract or in a separate written document signed by everyone involved. The specifics of this relationship have to be confirmed using a standard form where roles are clearly checked and identified. This legal obligation is in addition to other disclosure rules and can be taken care of by any salesperson or broker associate connected to the main broker.
Section § 2079.19
This law explains that just because a seller or buyer pays an agent, it doesn't automatically define the kind of relationship they have with that agent. Additionally, agents involved in a real estate transaction can agree on how they'll share any commissions or compensation, but this agreement alone doesn't define their relationships with the buyer or seller.
Section § 2079.20
This law states that an agent isn't stopped from choosing a certain type of working relationship as long as it follows the rules in Sections 2079.14 and 2079.17, and it's not specifically against this article's guidelines.
Section § 2079.21
This law states that a dual agent, someone representing both the buyer and seller in a real estate deal, cannot disclose confidential information from one party to the other without express permission. Confidential information includes things like financial situation or how much the buyer or seller might be willing to pay or accept. The rule stresses that confidentiality, especially about the potential price, must be maintained, but it doesn't change any other responsibilities the agent has to clients.
Section § 2079.22
This section of the law says that a real estate agent can work for both the buyer and the seller in the same transaction. However, if either the buyer or seller decides not to have their own agent, that doesn't automatically make the existing agent a dual agent.
Section § 2079.23
This law states that any contract between a principal and an agent can be changed if both parties agree in writing, as long as it's done before the agency's task is completed. Also, a lender or auction company that manages parts of a real estate transaction can't demand that homeowners or their agents protect them from legal claims related to their own actions as a condition for approving the transaction. If any agreement tries to enforce this kind of protection, it's considered invalid and cannot be enforced.
Section § 2079.24
This section makes it clear that real estate agents and those working with them must still be fully honest and transparent with buyers and sellers. It emphasizes that they can't dodge responsibility if they fail to share important information or if they act against the interests of their clients.
Section § 2079.25
This section basically means that the rules or requirements mentioned in subdivision (d) of another section, Section 1102.1, also apply to the laws covered in this section.