What is a latent defect in real estate?

A latent defect is also often called an inherent defect and it is in simple terms a hidden problem within a real estate property. It essentially is a problem that is unable to be discovered through a professional inspection as the standard inspected areas do not give in microscopic view of everything on the property. It is a concealed issue that does not have the ability to be seen until after the home purchase.

Latent defects often become items claimed on homeowners insurance coverage and liabilities. It is a hidden defect or imperfection in a real estate property and sometimes could be possible grounds for a lawsuit or breach of contract on the part of the contractor that built the property or the previous owner.

There are several latent defects that can occur in real estate properties a buyer may be unable to find through due diligence and an inspection. Some homeowners insurance may not cover these late and defects but other providers have designed coverage to help protect homeowners in these events.

Common latent defects in real estate

Latent defects can include anything undiscovered by a standard property inspection the most common ones can include the following:

Water damage, plumbing damage including leaks, mold

Pest issues such as insect infestation including termites

Unforeseen roofing issues

HVAC design flaws

Electrical issues within walls

What is the difference between a latent defect and a patent defect?

Latent defect and patent defect are opposite terms of one another. A patent defect is something that is easily spotted either by the potential home buyer or the inspector. Basically, anything that an inspector can visibly see and note as an issue on their inspection report is a patent defect.

What can you do about latent defects as a homeowner?

Both latent defects and patent defects should be communicated as soon as they are recognized. If you discover a latent defect after purchasing a brand new construction home it is especially important to make sure you report it within a specified time period. This is usually within the warranty period, or what can also be called the defects liability period.

Who is responsible for latent defects?

When it comes to a latent defect a homeowner typically bears the bulk of the responsibility. Real estate contracts will cover whether a seller has the responsibility to fix certain defects but in a majority of cases, the seller is exempt from latent defects as they go unseen and often are unknown even by the seller. Some latent defects may have been known by a previous homeowner but it is often difficult to prove without a doubt that the previous owner knew about the defect.

Not all defects in a home can be seen through inspection but a majority of issues can be found by a professional and experienced real estate inspector. This is why it is always important not to waive your inspection contingency when purchasing a home.

For more information on purchasing real estate in Omaha and surrounding areas please contact us anytime.