RE: INSPECTION DUTIES
Duty to Inspect:
Easton v. Strassburger: In 1984, the Court held that a Seller’s agent has an affirmative duty to conduct a “reasonably competent and diligent inspection” of residential properties and must disclose all facts materially affecting market value or desirability.
California Civil Code §2079: In 1985, California Civil Code §2079 became law, and requires a licensed real estate professional to conduct a reasonably competent visual inspection of residential properties and disclose all “material conditions” affecting marketability or desirability. This inspection obligation is owed to both Buyer and Seller.
Duty of Care:
Montoya v. McLeod: In 1985, the Court held that a licensed real estate professional must exercise a “higher degree of skill” than a layperson in performing inspection duties required by Civil Code §2079. Agents are expected to conduct a more diligent visual inspection than an average Buyer or Seller.
- 1. CONDUCT A “REASONABLY COMPETENT VISUAL INSPECTION”.
NOTE ALL “RED FLAGS” ON THE TRANSFER DISCLOSURE STATEMENT.
LOOK INSIDE AND OUTSIDE OF THE RESIDENCE.
*LOW WATER PRESSURE
*RECENT REPAIR WORK
*NOISE CONDITIONS (drums, neighbors)
*NUISANCES (lighting, airports, animals)
USE ALL OF YOUR SENSES.
*SIGHT – VISUAL DEFECTS OR CONDITIONS
*SOUND – NEIGHBORHOOD NUISANCES OR NOISES
*SMELL – ODORS
DOCUMENT YOUR VISUAL INSPECTION
*INSPECT EACH ROOM
*INSPECT THE GARAGE
*INSPECT OUTSIDE THE HOUSE
*INSPECT THE YARD
*NOTE ALL “RED FLAGS”
*NOTE ALL CONCEALED AREAS
*NOTE LARGE CARPETS OVER THE FLOOR
*NOTE STRANGE SMELLS
*NOTE NEIGHBORHOOD CONDITIONS (KENNEL, BAND, AIRCRAFT NOISE)
NOTE INACCESSIBLE AREAS OF THE PROPERTY
*BOXES IN GARAGE PREVENT INSPECTION
*LARGE FURNITURE IN LIVING ROOM PREVENTS INSPECTION
NEGLIGENT REFERRAL OF INSPECTOR
*PROVIDE BUYER A LIST OF MULTIPLE INSPECTORS
*HAVE BUYER ACKNOWLEDGE RECEIPT OF THE LIST
*ASSURE THOSE ON LIST ARE CREIA OR ASHI
INVESTIGATION AS TO PERMITS NOT REQUIRED
*MAKE NO REFERENCE TO ACTUAL SQUARE FOOTAGE W/O SOURCE
*MAKE NO REFERENCE TO STATUS OF PERMITS
*DISCLOSE ALL UNPERMITTED STRUCTURES YOU ARE AWARE OF
*BUYER TO CONFIRM STATUS OF PERMITS
*IF YOU MAKE REPRESENTATIONS, YOU WILL BE LIABLE