Permit for basement disclosure

Seller Perez added a new basement to his house 10 years ago.  What are Seller Perez’s obligations to any potential purchasers of this house?

  1.   Perez must disclose this information to the broker, who will then determine whether or not to disclose it to the buyer
  2.   Perez does not have to disclose anything.
  3.   Perez only has to disclose the add-on if it was not permitted
  4.   Perez must disclose the information regardless of whether the basement was properly permitted.

The answer is D.