A homeowner received estimates that ranged between $20,000 and $25,000 for repairing damage caused by water leaking into the basement. The owner couldn't afford the repairs, so he constructed a false floor over the entire basement and installed carpet over the floor to conceal the damage. When he listed the house, he did not disclose the leak or the damage to the basement on the property disclosure form. The basement damage is an example of a--
A) patent defect, and the brokerage firm may be liable for not discovering the false floor and the damage.
B) patent defect, and the brokerage firm is not liable for not discovering the false floor and the damage.
C) latent defect, and the listing brokerage firm is not liable for not discovering the false floor over the damage.
D) latent defect, and the listing brokerage firm may be liable for not discovering the false floor over the damage.
Answer: C) latent defect, and the listing brokerage firm is not liable for not discovering the false floor over the damage.
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