Seller is liable for the failure to disclose the latent defect.
When a property is purchased by a buyer, the seller is legally liable to disclose to the buyer, any property damage or current problems regarding the property, known as latent defect. If fails to, then the seller is liable for the failure to disclose the latent defect. Here, the problem that the basement gets wet when it rains is a latent defect in the sense that it cannot be identified by an external observation in normal conditions.
So here, the seller is liable even though he has informed the listing agent. Now the liability can be extended to the agent if he prove that he has informed prior to the agent regarding the issue.
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