{"id":1879,"date":"2021-10-25T03:56:04","date_gmt":"2021-10-25T03:56:04","guid":{"rendered":"https:\/\/crowdsourcelawyers.com\/judicial-council-california-civil-jury-instructions-caci\/?page_id=1879"},"modified":"2022-05-09T19:09:07","modified_gmt":"2022-05-09T19:09:07","slug":"caci-4109-duty-of-disclosure-by-sellers-real-estate-broker-to-buyer","status":"publish","type":"page","link":"https:\/\/crowdsourcelawyers.com\/judicial-council-california-civil-jury-instructions-caci\/caci-4109-duty-of-disclosure-by-sellers-real-estate-broker-to-buyer\/","title":{"rendered":"CACI 4109 Duty of Disclosure by Seller\u2019s Real Estate Broker to Buyer"},"content":{"rendered":"\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-kv2bmplx-54e5b24ea8743e412edfd6955746fd5b\">\n#top .av-special-heading.av-kv2bmplx-54e5b24ea8743e412edfd6955746fd5b{\npadding-bottom:10px;\n}\nbody .av-special-heading.av-kv2bmplx-54e5b24ea8743e412edfd6955746fd5b .av-special-heading-tag .heading-char{\nfont-size:25px;\n}\n.av-special-heading.av-kv2bmplx-54e5b24ea8743e412edfd6955746fd5b .av-subheading{\nfont-size:15px;\n}\n<\/style>\n<div  class='av-special-heading av-kv2bmplx-54e5b24ea8743e412edfd6955746fd5b av-special-heading-h1 blockquote modern-quote  avia-builder-el-0  el_before_av_hr  avia-builder-el-first '><h1 class='av-special-heading-tag '  itemprop=\"headline\"  >CACI 4109 Duty of Disclosure by Seller\u2019s Real Estate Broker to Buyer<\/h1><div class='av-subheading av-subheading_below'><p>California Civil Jury Instructions CACI<\/p>\n<\/div><div class=\"special-heading-border\"><div class=\"special-heading-inner-border\"><\/div><\/div><\/div>\n<div  class='hr av-av_hr-91d7ccd583a503147498e120fee2ff9b hr-default  avia-builder-el-1  el_after_av_heading  el_before_avia_sc_search '><span class='hr-inner '><span class=\"hr-inner-style\"><\/span><\/span><\/div>\n\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" 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action='https:\/\/crowdsourcelawyers.com\/judicial-council-california-civil-jury-instructions-caci\/' id='searchform_element' method='get' class='' data-element_id='av-avia_sc_search-f7f83518637509acfac1c9900b84c1e7' ><div class='av_searchform_wrapper'><input type='search' value='' id='s' name='s' placeholder='Search CACI' aria-label='Search CACI' class='av-input-field ' required \/><div class='av_searchsubmit_wrapper '><input type='submit' value='Find' id='searchsubmit' class='button ' title='View results on search page' aria-label='View results on search page' \/><\/div><input type='hidden' name='numberposts' value='8' \/><input type='hidden' name='post_type' value='page' \/><input type='hidden' name='results_hide_fields' value='post_titles,meta,image' \/><\/div><\/form><\/search><\/div>\n<section  class='av_textblock_section av-av_textblock-e878f05c31dff72941bf1e49a00d9ff5 '   itemscope=\"itemscope\" itemtype=\"https:\/\/schema.org\/CreativeWork\" ><div class='avia_textblock'  itemprop=\"text\" ><ul>\n<li><a href=\"https:\/\/crowdsourcelawyers.com\/judicial-council-california-civil-jury-instructions-caci\/\">CACI Jury Instructions Index<\/a><\/li>\n<li><a href=\"https:\/\/caci-fillable-forms.crowdsourcelawyers.com\/\">App: CACI Jury Instructions Fillable Forms Word Format<\/a><\/li>\n<\/ul>\n<\/div><\/section>\n<div  class='hr av-av_hr-91d7ccd583a503147498e120fee2ff9b hr-default  avia-builder-el-4  el_after_av_textblock  el_before_av_textblock '><span class='hr-inner '><span class=\"hr-inner-style\"><\/span><\/span><\/div>\n\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-kv2bnx0z-24dc9f424bed6dd99f24d6ab0f20c333\">\n#top .av_textblock_section.av-kv2bnx0z-24dc9f424bed6dd99f24d6ab0f20c333 .avia_textblock{\nfont-size:20px;\n}\n<\/style>\n<section  class='av_textblock_section av-kv2bnx0z-24dc9f424bed6dd99f24d6ab0f20c333 '   itemscope=\"itemscope\" itemtype=\"https:\/\/schema.org\/CreativeWork\" ><div class='avia_textblock'  itemprop=\"text\" ><h2 class=\"SS_Banner\">4109\u00a0Duty of Disclosure by Seller\u2019s Real Estate Broker to Buyer<\/h2>\n<hr \/>\n<p><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">A real estate broker for the seller of property must disclose to the buyer all facts known to the broker regarding the property or relating to the transaction that materially affect the value or desirability of the property. A broker must disclose these facts if the broker knows or should know that the buyer is not aware of them and cannot reasonably be expected to discover them through diligent attention and observation. The broker does not, however, have to disclose facts that the buyer already knows or could have learned with diligent attention and observation. <br class=\"avia-permanent-lb\" \/><br class=\"avia-permanent-lb\" \/><\/span><\/p>\n<hr \/>\n<div class=\"SS_Note\">\n<h2 class=\"SS_HideShowSection SS_Expandable\"><\/h2>\n<div id=\"TRNotes_n_1\">\n<p><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">New December 2013; Revised May 2020 <br class=\"avia-permanent-lb\" \/><br class=\"avia-permanent-lb\" \/><\/span><\/p>\n<hr \/>\n<p><a href=\"https:\/\/crowdsourcelawyers.com\/\">Crowdsource Lawyers<\/a><\/p>\n<p><a href=\"https:\/\/crowdsourcelawyers.com\/judicial-council-california-civil-jury-instructions-caci\">https:\/\/crowdsourcelawyers.com\/judicial-council-california-civil-jury-instructions-caci<\/a><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\"><br class=\"avia-permanent-lb\" \/><\/span><\/p>\n<hr \/>\n<\/div>\n<\/div>\n<div class=\"SS_Note\">\n<h2 class=\"SS_HideShowSection SS_Expandable\">Directions for Use<\/h2>\n<div id=\"TRNotes_n_2\">\n<p>This instruction should be read after\u00a0CACI No. 400,\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Negligence\u2014Essential Factual Elements<\/span>, if a seller\u2019s real estate broker\u2019s breach of duty of disclosure to the buyer is at issue. A broker\u2019s failure to disclose known material facts to the buyer may constitute a breach of duty for purposes of a claim for negligence. Causation and damages must still be proved. This instruction may also be used with instructions in the Fraud and Deceit series (CACI No. 1900\u00a0et seq.) for a cause of action for misrepresentation or concealment. (See\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Holmes v. Summer<\/span>\u00a0(2010) 188 Cal.App.4th 1510, 1528 [116 Cal.Rptr.3d 419].)<\/p>\n<p>For an instruction on the fiduciary duty of a real estate broker to the broker\u2019s own client, see\u00a0CACI No. 4107,\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Duty of Disclosure of Real Estate Broker to Client<\/span>. For an instruction on the duty of the seller\u2019s real estate broker under\u00a0Civil Code section 2079\u00a0to conduct a visual inspection of the property and disclose to the buyer all facts materially affecting the value or desirability of the property that an investigation would reveal, see\u00a0CACI No. 4108,\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Failure of Seller\u2019s Real Estate Broker to Conduct Reasonable Inspection\u2014Essential Factual Elements<\/span>.<br class=\"avia-permanent-lb\" \/><br class=\"avia-permanent-lb\" \/><\/p>\n<hr \/>\n<\/div>\n<\/div>\n<div class=\"SS_Note\">\n<h2 class=\"SS_HideShowSection SS_Expandable\">Sources and Authority<\/h2>\n<div id=\"TRNotes_n_3\">\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201c\u2009\u2018[W]here the seller knows of facts materially affecting the value or desirability of the property which are known or accessible only to him and also knows that such facts are not known to, or within the reach of the diligent attention and observation of the buyer, the seller is under a duty to disclose them to the buyer. [Citations.]\u2019 When the seller\u2019s real estate agent or broker is also aware of such facts, \u2018he [or she] is under the same duty of disclosure.\u2019 A real estate agent or broker may be liable \u2018for mere nondisclosure since his [or her] conduct in the transaction\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">amounts to a representation of the nonexistence of the facts which he has failed to disclose<\/span>\u00a0[citation].\u2019\u2009\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Holmes, supra<\/span>, 188 Cal.App.4th at pp. 1518\u20131519, original italics, internal citations omitted.)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201cEven in the absence of a fiduciary duty to the buyer, listing agents are required to disclose to prospective purchasers all facts materially affecting the value or desirability of a property that a reasonable visual inspection would reveal. And regardless of whether a listing agent also represents the buyer, it is required to disclose to the buyer all known facts materially affecting the value or desirability of a property that are not known to or reasonably discoverable by the buyer.\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Horiike v. Coldwell Banker Residential Brokerage Co.<\/span>\u00a0(2016) 1 Cal.5th 1024, 1040 [210 Cal.Rptr.3d 1, 383 P.3d 1094].)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201cThe real estate agent or broker representing the seller is a party to the business transaction. In most instances he has a personal interest in it and derives a profit from it. Where such agent or broker possesses, along with the seller, the requisite knowledge\u2009\u2026\u2009, whether he acquires it from, or independently of, his principal, he is under the same duty of disclosure. He is a party connected with the fraud and if no disclosure is made at all to the buyer by the other parties to the transaction, such agent or broker becomes jointly and severally liable with the seller for the full amount of the damages.\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Lingsch v. Savage<\/span>\u00a0(1963) 213 Cal.App.2d 729, 736 [29 Cal.Rptr. 201], footnote omitted.)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201cA breach of the duty to disclose gives rise to a cause of action for rescission or damages.\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Alfaro v. Community Housing Improvement System &amp; Planning Assn., Inc.<\/span>\u00a0(2009) 171 Cal.App.4th 1356, 1383 [89 Cal.Rptr.3d 659].)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201cThe \u2018elements of a simple negligence action [are] whether [the defendant] owed a legal duty to [the plaintiff] to use due care, whether this legal duty was breached, and finally whether the breach was a proximate cause of [the plaintiff\u2019s] injury. [Citations.]\u2019 We have already stated that the buyers alleged facts sufficient to impose a legal duty on the brokers. Furthermore, they have alleged facts sufficient to show a breach of that duty. Finally, the buyers alleged that the breach caused them harm. In short, the buyers stated facts sufficient to constitute a cause of action on a negligence theory. Our cursory analysis of this one theory is enough to demonstrate that the trial court erred in sustaining the brokers\u2019 demurrer without leave to amend, but is not meant to preclude the buyers\u2019 pursuit of their other [fraud] theories.\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Holmes, supra<\/span>, 188 Cal.App.4th at p. 1528, internal citation omitted.)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201cDespite the absence of privity of contract, a real estate agent is clearly under a duty to exercise reasonable care to protect those persons whom the agent is attempting to induce into entering a real estate transaction for the purpose of earning a commission.\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Holmes, supra<\/span>, 188 Cal.App.4th at p. 1519.)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201c[A] seller\u2019s agent has no affirmative duty to disclose latent defects unless the agent \u2018<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">also knows that such facts are not known to, or within the reach of the diligent attention and observation of the buyer<\/span>.\u2019\u2009\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Peake v. Underwood<\/span>\u00a0(2014) 227 Cal.App.4th 428, 445 [173 Cal.Rptr.3d 624], original italics.)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201c[W]hen a real estate agent or broker is aware that the amount of existing monetary liens and encumbrances exceeds the sales price of a residential property, so as to require either the cooperation of the lender in a short sale or the ability of the seller to put a substantial amount of cash into the escrow in order to obtain the release of the monetary liens and encumbrances affecting title, the agent or broker has a duty to disclose this state of affairs to the buyer, so that the buyer can inquire further and evaluate whether to risk entering into a transaction with a substantial risk of failure.\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Holmes, supra<\/span>, 188 Cal.App.4th at pp. 1522\u20131523.)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201c[W]e do not convert the seller\u2019s fiduciary into the buyer\u2019s fiduciary. The seller\u2019s agent under a listing agreement owes the seller \u2018[a] fiduciary duty of utmost care, integrity, honesty, and loyalty\u2009\u2026\u2009.\u2019 Although the seller\u2019s agent does not generally owe a fiduciary duty to the buyer, he or she nonetheless owes the buyer the affirmative duties of care, honesty, good faith, fair dealing and disclosure, as reflected in\u00a0Civil Code section 2079.16, as well as such other nonfiduciary duties as are otherwise imposed by law.\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Holmes, supra<\/span>, 188 Cal.App.4th at p. 1528, internal citation omitted.)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201cReal estate brokers are subject to two sets of duties: those imposed by regulatory statutes, and those arising from the general law of agency.\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Coldwell Banker Residential Brokerage Co. v. Superior Court<\/span>\u00a0(2004) 117 Cal.App.4th 158, 164 [11 Cal.Rptr.3d 564].)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201cIn enacting section 2079 [see\u00a0CACI No. 4108], the Legislature did not intend to preclude a real estate agent\u2019s liability for fraud. However, because a seller\u2019s agent has no fiduciary relationship with a buyer, the courts have strictly limited the scope of an agent\u2019s disclosure duties under a fraudulent concealment theory.\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Peake, supra<\/span>, 227 Cal.App.4th at p. 444, internal citation omitted.)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201cThe primary difference between the disclosure obligations of an exclusive representative of a seller and a dual agent representing the seller and the buyer is the dual agent\u2019s duty to learn and disclose facts material to the property\u2019s price or desirability, including those facts that might reasonably be discovered by the buyer.\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Horiike, supra<\/span>, 1 Cal.5th at pp. 1040\u20131041.) <br class=\"avia-permanent-lb\" \/><br class=\"avia-permanent-lb\" \/><\/span><\/p>\n<hr \/>\n<\/div>\n<\/div>\n<h2 class=\"SS_Heading\"><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\"><span class=\"SS_ib\" data-housestyle=\"EMPHASIS_ib\">Secondary Sources<\/span><\/span><\/h2>\n<div>5 Witkin, Summary of California Law (11th ed. 2017) Torts, \u00a7\u2009914<\/div>\n<div>12 Witkin, Summary of California Law (11th ed. 2017) Real Property, \u00a7\u00a7\u2009487, 489<\/div>\n<div>Greenwald &amp; Asimow, California Practice Guide: Real Property Transactions, Ch. 2-C,\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Broker\u2019s Relationship And Obligations To Principal And Third Parties<\/span>, \u00b6\u00b6\u20092:164, 2:172 (The Rutter Group)<\/div>\n<div>California Real Property Sales Transactions (Cont.Ed.Bar 4th ed.) \u00a7\u00a7\u20092.132\u20132.136<\/div>\n<div>3\u00a0California Real Estate Law and Practice, Ch. 63,\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Duties and Liabilities of Brokers<\/span>, \u00a7\u00a7\u200963.20\u201363.22\u00a0(Matthew Bender)<\/div>\n<div>10\u00a0California Forms of Pleading and Practice, Ch. 103,\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Brokers<\/span>, \u00a7\u2009103.31\u00a0(Matthew Bender)<\/div>\n<div class=\"SS_Note\">\n<div id=\"TRNotes_n_3\"><\/div>\n<\/div>\n<\/div><\/section>\n<div  class='hr av-7f0y9j-5cb05d04210e12ad2b0daf6ba01488e3 hr-default  avia-builder-el-6  el_after_av_textblock  el_before_av_textblock '><span class='hr-inner '><span class=\"hr-inner-style\"><\/span><\/span><\/div>\n\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-5ju6nb-0a72376ff38a0daa7761228899984c03\">\n#top .av_textblock_section.av-5ju6nb-0a72376ff38a0daa7761228899984c03 .avia_textblock{\nfont-size:22px;\n}\n<\/style>\n<section  class='av_textblock_section av-5ju6nb-0a72376ff38a0daa7761228899984c03 '   itemscope=\"itemscope\" itemtype=\"https:\/\/schema.org\/CreativeWork\" ><div class='avia_textblock'  itemprop=\"text\" ><p><a href=\"https:\/\/crowdsourcelawyers.com\/\">CrowdSourceLawyers.com<\/a><\/p>\n<\/div><\/section>\n","protected":false},"excerpt":{"rendered":"","protected":false},"author":3,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"class_list":["post-1879","page","type-page","status-publish","hentry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - 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