Final answer:
In California, sellers or their agents are prohibited from disclosing that a former owner had AIDS, as it is not relevant to the real estate transaction and personal health information is protected.The correct option is B.
Step-by-step explanation:
Under California law, the correct statement regarding whether sellers or their agents must disclose that a former owner had AIDS is option B: Sellers or their agents are prohibited from disclosing that a former owner had AIDS. Disclosure of this nature is deemed not relevant to the real estate transaction, and such personal health information is protected for the privacy and dignity of the individuals involved.
It's important to note that the concern over AIDS in real estate transactions is rooted in misconceptions from the early days of the AIDS epidemic. However, it is now well-established that HIV, the virus that causes AIDS, cannot be transmitted through casual contact. Therefore, health conditions like AIDS, which have no effect on the physical condition of the property, do not need to be disclosed as they do not impact the buyer's decision-making in a real estate transaction.