A real estate licensee, while in the process of trying to obtain a listing, noticed a huge puddle in the back yard which suggested a serious water leak, since there had been no recent rain. What should the licensee do?

Ignoring the water leak is not a viable option, as it could lead to significant issues down the line, including property damage and legal repercussions. A real estate licensee has a responsibility to address any observable defects in a property, and neglecting to do so can result in a breach of fiduciary duty.

While adjusting the price could be a consideration after addressing the water leak, the primary step should be to investigate the issue further. Simply suggesting a price adjustment without gathering more information may not accurately reflect the property's condition or the necessary repairs, possibly misleading both the seller and prospective buyers.

Planting flowers to hide the water leak is an inappropriate solution that fails to address the underlying problem. This approach could be seen as deceptive and unprofessional, compromising the integrity of the listing and potentially leading to legal issues if the leak is discovered after the sale.