On July 13, 2026, Broker Risk Management (“BRM”) provided a webinar regarding the obligations of inspections and disclosures. The following are additional questions and answers arising from that webinar:
QUESTION NO. 1: Regarding noise issues, if a home is a distance from a nuisance, but noise can still be heard, does it have to be disclosed?
RESPONSE: Yes, if the noise affects the value or desirability of the property, it must be disclosed. For example, if a train station is located three blocks from a house but the whistles can be heard at the property, it should be disclosed.
QUESTION NO. 2: The law says that a death at a property occurring more than three years prior to the sale does not have to be disclosed. Do you agree with that? What if it is a notorious murder that occurred at the property more than 30 years ago?
RESPONSE: It is BRM’s position that a death occurring at a property, no matter when, should be disclosed to a buyer. There is a conflict in the law in that the law requires a disclosure of all facts which materially affect the value or desirability of the property. On the other hand, the law also states that deaths occurring more than three years prior to the transaction do not need to be disclosed. Given that BRM has seen a number of claims arising out of the non-disclosure of deaths occurring at a property more than three years prior to the sale, to avoid claims BRM recommends that all deaths at a property be disclosed no matter when they occurred. The obligation to disclose is further heightened if the death is notorious such as constituting a crime.
QUESTION NO. 3: I have been told that if there is a ghost at the property, it should be disclosed. How is that proven?
RESPONSE: A buyer asserting a claim for non-disclosure has the burden of proving that the condition exists prior to the close of escrow, known or reasonably known to the parties, but not disclosed. That evidence can be based on testimony, assuming the buyer has seen or felt the ghost. If the buyer has witnesses, the buyer may be able to convince a jury that a ghost exists and should have been disclosed. This is particularly important if other witnesses (i.e., neighbors or seller’s family members) can also testify that the seller admitted there was a ghost or saw the ghost themselves. Notwithstanding those issues, the bottom line is that to avoid the claim in the first place, if a seller is aware of a ghost, it should be disclosed.
QUESTION NO. 4: As the listing agent, how far do I have to go with regard to the sellers completing the disclosures? Do I need to go over the disclosures line by line? Do I need to doublecheck them?
RESPONSE: You do not have to go over the sellers’ disclosures line by line with them. However, it is recommended that you provide the sellers with CAR’s Seller Advisory (SA) and the Disclosure Information Advisory (DIA). It is also important that you counsel the sellers with regard to the importance of disclosures. You should personally provide the sellers with the Transfer Disclosure Statement and Seller Property Questionnaire with instructions as the importance of taking their time and carefully reviewing each question and answering thoroughly to the best of their ability. Sending these disclosures through DocuSign is discouraged. Instead, the disclosures should be provided to the sellers to complete in their own handwriting. In addition, both listing as well as buyer’s agents should review the disclosures to ensure that they are complete with all boxes checked and any needed explanations included and are clear and understandable. If the disclosures are incomplete, the disclosures should be returned to the seller for completion.
QUESTION NO. 5: How do we guide a seller to complete disclosures when the seller speaks primarily Spanish?
RESPONSE: It is recommended that if English is a second language for a seller, the seller have someone there to translate other than the agent. For example, an adult family member, friend, or even a religious advisor can assist them in completing the disclosures. Agents are discouraged from providing this assistance as it will appear that the agent participated in the completion of the disclosures, which the agent should not do. We have handled many claims in such instances where the seller later blames their agent for improperly advising them on how to answer the disclosure questions.
QUESTION NO. 6: I am a listing agent. The seller told me that they spent over $100,000 in improvements but they do not have receipts or proof totaling that amount. How do I disclose this? What do I say on the MLS?
RESPONSE: All improvements to the property by, or known to, seller must be disclosed to the buyer in seller’s disclosures. However, if the amount spent by the seller on the improvements cannot be proven, it should not be entered into the Multiple Listing Service. Civil Code §1088 states that agents are liable for any misstatements in the MLS. Therefore, if you do not have proof that the seller’s statement is accurate, you should not include it in the MLS. If the seller wishes to include it in marketing materials, you should have a disclaimer that the seller does not have receipts totaling $100,000 Perhaps it should not be included in the marketing materials if there is no proof.
QUESTION NO. 7: The seller has advised me that the property previously had mold, but the seller remediated it. What should be disclosed?
RESPONSE: The general rule is that a seller must disclose all prior defects and conditions at the property of which the seller is aware, even if repaired or remediated, must be fully disclosed to the buyer which could affect the value or desirability of the property. So, the seller should disclose that the property had mold and was remediated. If the seller has any inspection reports, mold clearance tests, bids, receipts, and any other documents pertaining to the mold, they should be provided to a buyer.
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.