What is the statute of limitations applicable to a real estate agent’s inspection and disclosure duty?
A cause of action against a real estate agent for negligent misrepresentation based on the statutory duty to inspect residential property and disclose, under California Civil Code Section 2079, is governed by the 2-year statute of limitations under California Civil Code Section 2079.4, not by the 3-year statute of limitations for fraud actions under California Code of Civil Procedure Section 338. (Loken v. Century 21-Award Properties (1995) 36 Cal. App. 4th 263.) (See also Williams v. Wells & Bennett Realtors (1997) 52 Cal. App. 4th 857.) However, after the Field case, this 2-year limitation period may not apply to buyer’s brokers only to seller’s brokers if the plaintiff claims this failure to be a breach of fiduciary duty (Field v. Century 21 Klowden-Forness Realty (1998) 63 Cal. App. 4th 18). The 2-year period starts from the date of possession. The date of possession is whichever of the following occurs first: (1) the date of recordation; (2) the date of close of escrow; or (3) the
