Latent defect
A problem with the home that isn't visible on inspection but that the seller knows about. Latent defects are the ones most likely to lead to a disclosure lawsuit after closing.
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Where this comes up: getting ready
Part 1 of 4
Why a seller cares
A latent defect is the one a buyer cannot see and you know about, and it is the kind that comes back as a lawsuit a year after closing. Disclosing what you know is what closes that door.
Part 2 of 4
A simple example
Your basement takes water in a hard spring rain, and you have a dehumidifier running to manage it. The buyer's inspector visits in August and sees a dry basement.
| What you do | What tends to follow |
|---|---|
| Write it on the disclosure | The buyer knows, prices it in or asks about it, and closing settles it |
| Say nothing and the inspector misses it | A wet basement next spring and a letter from the buyer's lawyer |
| Fix it and disclose the history | The best of both: the problem is gone and the record is clean |
A latent defect is only a problem after closing if it was a secret before it.
Part 3 of 4
What people get wrong
That an inspector finding nothing means you are clear. The inspection does not replace your disclosure; it only covers what can be seen that day.
Part 4 of 4 · where to read next
Where it appears in the sale
What a definition is, and what it isn't
Keighbor is a software company, not a law firm, brokerage, or tax adviser. This is general information, not legal, tax, financial, or real estate advice about your sale. Your situation may differ. Before acting on a contract, disclosure, title, tax, or pricing question, ask an appropriately licensed professional in your state.
Written and researched by Keighbor Research · drawn from the reference glossary · how we research and check what we publish
In your Room, this word explains itself where it appears.
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