A seller's agent knows that the seller intentionally failed to disclose on the property description statement that the basement leaks during heavy rains. The seller's agent must:
A. complete a new property disclosure statement himself
B. inform the local housing authority
C. inform the Department of Licensing
D. inform the prospective buyer that there is misrepresented information on the disclosure form
Answer: D. inform the prospective buyer that there is misrepresented information on the disclosure form
A real estate agent has the duty to disclose known material facts to the parties in a transaction, even when the agent's principal would prefer not to have the information disclosed. A leaking basement is a latent defect and certainly qualifies as a material fact.
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