Jacobs v. Coldwell Banker Residential Brokerage Company

Facts: A residential property contains an empty swimming pool with a diving board in the backyard. A real estate agent who lists the property for sale inspects the property and has the pool inspected for any damage, but does not find any defects. The agent shows the property to a prospective buyer. The prospective buyer stands on the diving board, which collapses. The buyer falls into the pool and sustains serious injuries.

Claim: The prospective buyer seeks money losses from the agent’s broker, claiming the broker is liable for the condition of the diving board since they listed the property for sale.

Counter claim: The agent’s broker claims they are not responsible for the state of the diving board since the real estate agent completed a thorough inspection of the property and found no defects with the diving board.

Holding: A California Court of Appeals holds the broker is not liable for the state of the diving board since they had no reason to believe there were any defects. [Jacobs v. Coldwell Banker Residential Brokerage Company (July 25, 2017) _CA4th_]

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