In real estate, a Latent Defect is a hidden or concealed defect in a property that is not discoverable through a reasonable inspection. These defects are not apparent upon ordinary observation and may exist within structural components, systems, or materials.
Latent defects are significant in real estate transactions because sellers and agents may still have a duty to disclose known hidden defects. Failure to disclose a known latent defect can result in legal liability, even if the defect was not visible at the time of sale.
