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.

A seller's agent, upon learning that the seller knowingly concealed relevant property information, such as a basement leakage, must inform the prospective buyer about this misrepresented information. This practice aligns with professionalism and legality, and protects the agent from potential legal repercussions.

Explanation:

In the context of real estate, the ethical and legal obligation of the seller's agent is to ensure that all relevant information about the property is disclosed to the potential buyer. If they learn that the seller has intentionally failed to disclose that the basement leaks during heavy rain, the agent is obligated to inform the prospective buyer about this misrepresented information on the property disclosure statement.

This is a cardinal principle in real estate and law, and falls under the doctrine of caveat emptor, or 'let the buyer beware'. However, the caveat is mitigated by the legal obligation on the seller and their agent to make a 'full and honest disclosure' of facts that may materially affect the property's value or desirability. Failing to do this could entail legal consequences.

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