California real estate disclosure laws California Real Estate Disclosures | Page 35

Each agent’s inspection certification is contained in the Real Estate Transfer
Disclosure Statement. In addition to the foregoing, real estate agents must
disclose all material facts affecting the value, desirability, and intended use
about which they have or should have notice or knowledge that may not be
discernable from the required visual inspection.
(CAL. BUS. & PROF. § 10176(a); CAL. CIV. § 2079 et. seq.)

B. Agency Relationship Disclosures
To provide an explanation of agency relationships and duties, the law
requires that a real estate broker disclose in writing the general duties which
arise from certain agency relationships. Additionally, the broker’s status as
agent of the seller, agent of the buyer, or agent of both the seller and buyer
(dual agent) is to be disclosed to the principals of the transaction who must
consent to the agency relationship(s) disclosed. This requirement applies to
the sale, exchange, or lease (for more than one year) of real property
improved with 1 to 4 dwelling units, or the sale of a manufactured home (as
defined in Health and Safety Code Section 18007).
The required agency disclosure form includes the following specific
language:
DISCLOSURE REGARDING REAL ESTATE AGENCY RELATIONSHIP
(As required by the Civil Code)
When you enter into a discussion with a real estate agent regarding a real estate
transaction, you should from the outset understand what type of agency
relationship and representation you wish to have with the agent in the
transaction.
SELLER’S AGENT
A Seller’s agent under a listing agreement with the Seller acts as the agent for
the Seller only. A Seller’s agent or a subagent of that agent has the following
affirmative obligations:
To the Seller:
(a) A fiduciary duty of utmost care, integrity, honesty, and loyalty in dealings
with the Seller.
To the Buyer and the Seller:
(a) Diligent exercise of reasonable skill and care in performance of the agent’s
duties.
(b) A duty of honest and fair dealing and good faith.
(c) A duty to disclose all facts known to the agent materially affecting the value
or desirability of the property that are not known to, or within the diligent attention
and observation of, the parties.

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