Are Agents Required to do an Agent Visual Inspection Disclosure (AVID)?

There is a lot of confusion around filling out the cumbersome Agent Visual Inspection Disclosure (AVID) form. California Civil Code 2079 requires that an agent must conduct a reasonable competent and diligent visual inspection of real property in order to disclose to the prospective buyer and material facts affecting the property’s value, desirability, and intended use. Agents do not have to inspect:

• Areas not reasonably accessible;
• Areas off the site of the property;
• Public records or permits concerning the title or use of the property; or
• The common area if the property is in a common interest development

Since we know that California law requires agents to performs a visual inspection, we will determine what document to use.

First let’s establish what is a “material fact” from other facts, since that is what we agents are expected to disclose.

An online legal resource defines material fact as: A fact that would be important to a reasonable person in deciding whether to engage or not to engage in a particular transaction. Based on this definition, many cosmetic issues, like scratches on wood, for example, would not need to be mentioned. In fact, what if there are no material facts to disclosure? Do agents still have to do a disclosure? The answer is yes.

The good news is that there is a place in the transfer disclosure statement (TDS) Sections III and IV for agents to fulfill disclosure duties.

If there are more material facts to disclose then an AVID form can be used to give a more comprehensive account of the inspection.

If you don’t have access to an AVID form then you can you use a substitute form.

In no case should an agent leave the visual inspection section of a transfer disclosure statement empty and not do any other form. If this happens, and a buyer is adversely affected by a material fact that was missed by the agent then that buyer may pursue the agent for negligence.