A licensee has a listing. The licensee suspects that there is no city water to the home because it is in a rural area, but she relies on the seller's statement and says nothing concerning the water system to a buyer. The buyer discovers that the home has no city water service after the purchase. In this case, the licensee

While the licensee can file a complaint against the seller, doing so does not address her own potential liability for misrepresentation. The complaint would focus on the seller's failure to disclose important property information, but it does not absolve the licensee of her responsibility to investigate the property's water supply.

Though the licensee might consider legal action against the seller for non-disclosure, this option does not negate her own duty to inform the buyer. It reflects a reaction to the seller's actions rather than addressing her own potential liability for not verifying the water situation.

This choice incorrectly assumes that the licensee is exempt from liability solely based on the seller's failure to disclose. The licensee must still exercise reasonable care and diligence; in this scenario, her reliance on the seller's statement without further investigation can lead to liability for misrepresentation.