Broker A, representing a seller, never conducted an inspection of the house, which would have revealed water damage in the basement. How long does the buyer have to sue the broker?

The correct duration for a buyer to sue a broker for failure to disclose a material fact, such as water damage, is two years. This is based on California's statute of limitations for actions related to fraud or misrepresentation in real estate transactions.

In real estate transactions, brokers have a fiduciary duty to disclose all known material facts about a property that could affect a buyer's decision. If a broker does not conduct adequate inspections or fails to disclose significant issues like water damage, this could lead to claims of negligence or fraud.

The two-year statute of limitations applies specifically to claims that stem from issues of fraud, where the affected party may not discover the fraud until later. In this case, since the buyer would likely only learn of the water damage after purchase, the two-year period allows them to seek legal recourse once they become aware of the deficiency in the broker's actions.

Other options, such as one year, three years, or five years, do not align with the specifics of California's real estate law regarding disclosure responsibilities and the appropriate time frame for bringing such claims. Therefore, two years is the correct answer, as it accurately reflects the legal standard applied in similar situations concerning broker liability.