California Real Estate Practice Exam

What must the obligation to inspect a property and disclose material defects to a third person include?

1. Only defects listed by the previous owner

2. Defects that are visible and may require further investigation

3. Only defects found during professional inspections

4. Defects discovered through private investigations

The correct answer is: Defects that are visible and may require further investigation

The obligation to inspect a property and disclose material defects encompasses defects that are visible and may require further investigation. This is because real estate professionals are expected to conduct thorough due diligence and disclose any issues that could affect the property's value or safety. Visible defects are aspects that can be observed without special expertise, but they may indicate underlying issues requiring more thorough examination. By disclosing these visible defects, the agent ensures that potential buyers are fully informed and can make sound decisions regarding the property. The other options present limitations that do not align with the comprehensive nature of the inspection and disclosure obligations. For instance, only considering defects listed by the previous owner neglects other potential defects that might not have been communicated. Limiting disclosing to only defects found during professional inspections overlooks visible issues that may not have been noted during such evaluations. Lastly, focusing solely on defects discovered through private investigations could omit visible defects or issues that are apparent upon a general inspection, leading to incomplete disclosures affecting buyers' awareness and potential liability for the seller or agent.