California Real Estate Practice Exam

The obligation of a broker or salesperson to inspect a property for physical defects was based on?

1. Smith v. Jones

2. Johnson v. Davis

3. Easton v. Strassburger

4. Miller v. Lee

The correct answer is: Easton v. Strassburger

Easton v. Strassburger established the principle of caveat emptor, or "buyer beware," in which the seller is not obligated to disclose any physical defects in the property to the buyer. This means that it was the responsibility of the buyer to inspect the property for any defects. This case, along with other similar cases, led to a change in the law that shifted the duty to inspect from the buyer to the agent or broker representing the seller. Therefore, options A, B, and D are incorrect because they are not directly related to the obligation of a broker to inspect a property for physical defects. Option A (Smith v. Jones) deals with liability for disclosures made by an agent, option B (Johnson v. Davis) deals with the concept of "as is" sales, and option D (Miller v. Lee) deals with the statute of frauds. These cases are