On July 13, 2026, Broker Risk Management held the first part of a webinar entitled “A Deep Dive Into Inspections and Disclosures.” The following are questions and answers from that webinar:
QUESTION NO. 1: What are your thoughts on agents, buyers, and/or sellers attending inspections?
RESPONSE: It is to the advantage of all parties and agents to receive as much information as possible regarding the property. The more educated the parties and agents are regarding the property, the more equipped the parties will be in dealing with issues and ensuring the buyers and sellers are properly guided through the transaction. For example, if a home inspector identifies an electrical issue at the property, the buyer will be made aware of it. The buyer will also have an opportunity to ask any questions. If the seller is present and hears these comments, the seller will be prepared to address the issue in the event that the buyer asks for a credit or a repair. If the agents are present, the agents will have heard the comment and be in a better position to properly advise their clients. An agent who does not attend an inspection does not necessarily fall below the standard of care. However, agents attending inspections clearly are showing professionalism and striving to reach their highest professional level.
QUESTION NO. 2: Do you recommend pre-sale inspections?
RESPONSE: Whether to obtain presale inspections is a business decision made between the listing agent and the seller. There are advantages and disadvantages. The advantages are that the seller will become aware of any issues regarding or affecting the property. It also provides disclosures to the buyers. In addition, sellers and listing agents can ensure competent inspectors are inspecting the property and writing reports which fully and accurately describe the condition of the property for the buyer. On the other hand, sometimes sellers wish not to have inspections whether because they do not want to pay for it or do not want to highlight issues at the property.
QUESTION NO. 3: How do I handle a situation where a seller puts inaccurate information on the Transfer Disclosure Statement or Seller Property Questionnaire? Am I expected to transmit misleading information?
RESPONSE: If you are a listing agent and you know the information the seller is disclosing is inaccurate, it is recommended that you have a discussion with the seller regarding your concerns. If the seller refuses to change the disclosures, you should consult with your manager regarding further handling. Your manager may wish to discuss the issue with the seller. If the seller continues to provide misleading or inaccurate information or fails to disclose a material defect, you should recommend that your seller consult with a qualified California real estate attorney before transmitting any disclosures to a buyer. There are significant risks affiliated with misleading, inaccurate, or deliberately omitting material facts affecting the value or desirability of the property. You should also provide the seller with the Seller Advisory (SA) and Disclosure Information Advisory (DIA). In some circumstances your manager and/or legal counsel may advise you that you need to inform the seller that you are obligated to be truthful in your agent disclosures by adding the correct information in your AVID disclosure (See Next Question). If the seller persists despite following these steps, you need to consider whether you wish to continue to represent the seller as it creates legal risk for you.
QUESTION NO. 4: Can we use an AVID to contradict a seller’s TDS statements if we have knowledge the seller doesn’t or the listing agent has different knowledge?
RESPONSE: Yes. An AVID contains the agents’ disclosures based on a reasonable inspection of the property, as well as on other conditions known to the agent. An agent may have different knowledge than a seller or may make different observations. The agents’ inspections and disclosures should be to the best of the agents’ ability and not taking into account the sellers’ or any other inspections or disclosures.
QUESTION NO. 5: With regard to the sellers’ disclosures, do you recommend that the agent meet with the sellers in person while they complete the disclosures?
RESPONSE: Whether you meet in person or by Zoom, it is recommended that listing agents meet with clients to discuss the importance of disclosures. Listing agents are discouraged from sending the disclosures to sellers without fully explaining the importance of complete and accurate disclosures. Listing agents should also ensure they are available to sellers to answer questions. Remember, when in doubt, disclose.
QUESTION NO. 6: Do you recommend sellers completing the Transfer Disclosure Statement or Seller Property Questionnaire through Docusign or electronically?
RESPONSE: While it is legal to complete these disclosures electronically, it is not advisable. Sellers’ disclosures are extremely important to the transaction. If the disclosures are completed electronically, they may not be accurate and a seller may not pay as close attention to the disclosures as they would if they were reading hard copies and completing them in handwriting taking their time.
QUESTION NO. 7: Can sellers complete their disclosures by using Glide?
RESPONSE: It is not advisable for sellers to use Glide or other app to complete Transfer Disclosure Statements, Seller Property Questionnaires, and other material disclosures. The seller needs to appreciate the significance and importance of the disclosures. It is advisable that a seller review the disclosures, take their time responding to them, and consider each question appropriately. Using Glide may be too quick and does not allow the seller sufficient time to consider and evaluate each question.
QUESTION NO. 8: If an AVID is made part of the TDS, and the buyer submits a non-contingent offer, but the buyer’s agent’s AVID is provided after ratification of the contract, is the contingency period reopened?
RESPONSE: If a buyer receives a “completed” TDS prior to ratification of the contract, the buyer does not have an automatic statutory right to cancel the contract as set forth in Civil Code §1102.6, et seq. (The Civil Code states that a buyer can cancel a contract within three days of receiving a TDS if delivered by hand and five days if delivered by email or mail, assuming the contract has not been ratified.) A completed TDS is defined by CAR’s Residential Purchase Agreement as being completed by the seller and the listing agent. The completion by the buyer’s agent is not considered for these purposes. However, if the buyer’s agent makes a disclosure on the AVID, which materially affects the value or desirability of the property and is new to the buyer, the buyer may have a right to cancel based on new information. The parties would need to consult with a qualified California real estate attorney before completing this evaluation.
WEEKLY PRACTICE TIP: DO NOT FORWARD TO CLIENTS. This Weekly Practice Tip is an attorney-client privileged communication for the exclusive use of clients of Broker Risk Management and their agents. It may not be reproduced or distributed without the express written consent of Broker Risk Management LLP. The advice and recommendations contained herein are not necessarily indicative of standards of care in the industry but rather are intended to suggest good risk management practice.