He informed me that the Legal Department's job is to prosecute cases where there has been a potential violation of Real Estate Law. They do not provide interpretive opinions of hypothetical cases such as I presented.
However, regarding the obligation of a seller and/or seller's broker to disclose information that could result in a buyer's suffering economic loss, here is one citation:
Lingsch v. Savage, 213
An example is: http://links.jstor.org/sici?sici=0008-1221(196510)53%3A4%3C1062%3ABRITSO%3E2.0.CO%3B2-U
Beaver can be contacted at:
James L. Beaver
Assistant Chief Counsel
California Department of Real Estate
(916)227-0788
Hal Weber