×
Your C.A.R.
Industry 360°
Transaction Center
Learn & Thrive

2017 C.A.R. Officers

Meet the 2017 C.A.R. Leadership Team


C.A.R. Mission Statement

C.A.R. is a statewide trade association dedicated to the advancement of professionalism in real estate.


Advertise With Us

Learn about advertising with C.A.R.


Careers

C.A.R. and its subsidiaries are currently recruiting for the following job opportunities.


Customer Service

Looking for additional assistance? The Customer Contact Center is looking forward to serving you Monday through Friday between the hours of 8:30 a.m. and 4:45 p.m.


Media Center

C.A.R.'s Media Center houses the Association's news releases, media guidelines, and logos.

News Releases C.A.R. Logos
Partner With Us

Partner With Us


For New Members

As a new member of C.A.R. you have questions about your benefits and discounts. Find the answers here.

Member FAQs
Consumer Ad Campaign

C.A.R.'s annual consumer advertising campaign creates awareness of the REALTOR® brand and demonstrates the many benefits of the consumer-REALTOR® relationship.

Who's Your REALTOR®?
Guide to Benefits

As a member of C.A.R., you receive more than 100 free and discounted benefits. Find out more about your member benefits here.

C.A.R. Member Discounts NAR Member Discounts C.A.R. Insurance Products
REALTORS® Care

C.A.R. stands ready to assist REALTORS® who have been impacted by these wildfires through its Disaster Relief Fund.


Get Involved

Super REALTORS® protect our industry from bad legislation. Find out how you can too!


Innovators Workshop

Do you have an innovative idea(s) with regards to real estate? Submit your idea(s) for a chance to partner with C.A.R. and transform tomorrow's industry!


Scholarship Foundation

Scholarships for California students planning to pursue a career in real estate.


Education Foundation

Grants for California REALTORS® pursuing advanced real estate designations.


Diversity Programs

Find information and tools to help you connect with diverse groups and create business or leadership opportunities. 

International Real Estate 2017 WomanUP!™ Conference Real Estate Organizations
Young Professionals Network

New to the industry? YPN is a network to sharpen your skills, heighten your leadership, and connect with fellow REALTORS®.


C.A.R. Services

We are an email, a phone call or a click away. Don't hesitate and reach out to us!


Rosters & Directories

Need help finding the right person? Try searching through our various rosters & directories.


Top Searches
CLOSE

California Supreme Court rules on Horiike v. Coldwell Banker

Email Article
Lock icon
The page you are sharing is not public and requires a car.org account to view.
Send Email
What is this?
Add a quick link to this page from the Homepage when you are signed in
Share Article

In a much-watched case by the real estate industry, the California Supreme Court has ruled that a salesperson working with a seller owes a fiduciary duty to disclose material facts to the buyer in the transaction when both the buyer’s and seller’s salesperson are licensed under the same broker. In California, listing agents representing the seller have always understood they have a duty to disclose known material facts about a property whether they share a common broker or not.  
 
This law has been on the books since the 1980s and the duty to disclose known material facts affecting the property has long existed in residential transactions. The decision does not change that obligation. It is worthy of note that the jury found that the seller’s salesperson and broker were not liable for intentional or negligent misrepresentation or intentional concealment. The buyer had stipulated that the buyer’s salesperson was not legally responsible. This case does not outlaw dual agency; the law permitting it remains unchanged.

The Horiike v. Coldwell Banker case involved an issue of conflicting information on a Malibu property’s square footage. The Tax Assessor’s information indicated 9,434 square feet, while the building permit indicated a total of 11,050 square feet, including a guest house and a garage. However, the home’s architect stated the City of Malibu defines square footage differently for purposes of development, perhaps including outdoor living area and therefore, the architect indicated that the size was 15,000 square feet by that standard.

A property flier indicated the property had 15,000 square feet. The salesperson provided the buyer with multiple documents on the square footage and statements, which advised that the broker had not verified the square footage. The salesperson used forms that advised the buyer to use an appraiser, architect, surveyor, or civil engineer to verify the square footage. The jury already decided that neither the listing salesperson nor the broker was liable for concealment, intentional or even negligent misrepresentation. The remaining issue is whether that same conduct somehow breached a fiduciary duty that the court stated was “strikingly similar to the nonfiduciary duty of disclosure that Cortazzo [the listing salesperson] would have owed Horiike in any event.”

The court further stated that “even 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 desirablity of a property that a reasonable visual inspection would reveal.” This is current law, as stated in Civil Code Section 2079.16 and 1102.6.

As always, those representing parties in a transaction, whether with the same brokerage or not, should be vigilant to disclose all known material facts affecting the value and desirability of the property, and conduct a careful visual inspection. When transmitting information, it is best to attribute the source of the information, state that it is not verified and recommend they get an appropriate expert to do so.

Nov. 22, 2016

FEEDBACK