California Real Estate Practice Exam

Who is responsible for disclosing material defects and material facts to the buyer?

1. The seller only

2. The seller's agent only

3. Both the seller and the seller's agent or the buyer's agent

4. The buyer's agent only

The correct answer is: Both the seller and the seller's agent or the buyer's agent

When it comes to disclosing material defects and material facts to the buyer, both the seller and the seller's agent or the buyer's agent are responsible, depending on who is aware of the information. The seller is responsible for disclosing any known defects or facts about the property, while the seller's agent is responsible for disclosing any known defects or facts that they are aware of through their representation of the property. Similarly, the buyer's agent is responsible for disclosing any known defects or facts that they are aware of through their representation of the buyer's interests. Therefore, both the seller and their agent, as well as the buyer and their agent, have a responsibility to disclose material defects and material facts to the buyer. This ensures transparency and fairness in the transaction for all parties involved. The other options A, B, and D are incorrect because they single out one party as solely responsible for disclosure, when in reality, it is a shared responsibility between the seller, seller's agent, and buyer's agent.