California Real Estate Practice Exam

The obligation of a real estate agent to inspect a property for material defects extends to?

1. Commercial properties

2. One- to four-family houses only

3. Land only sales

4. Properties outside California

The correct answer is: One- to four-family houses only

The obligation of a real estate agent to inspect a property for material defects is generally considered to extend to one- to four-family houses. This is due to the fact that residential properties, particularly those within this range, are often subject to specific regulations and standards that require agents to disclose known defects to protect buyers. The concept of material defects is significant in residential real estate transactions because it directly impacts the buyer's decision-making process. In the context of this question, while the obligation could apply to commercial properties and larger residential developments, the specific training and legal obligations emphasized for real estate agents tend to focus on smaller residential properties. Additionally, the obligation does not typically extend to land-only sales or properties outside of California in the same manner, as those scenarios may involve different regulations and disclosure requirements.