Real Estate Talk Defects: Latent vs Patent
By Keeley Ward, EXP Realty Brokerage 905-449-0784
What is a defect? Broadly speaking, a defect is a problem or a flaw affecting a property or some-
thing rendering it unfit for its intended use. In a real estate transaction, there are two types of defects, those are Patent defects and Latent defects. For example, if you purchase a property and you discover the roof is leaking, that’s a defect. A defect can be minor or very serious. If a defect is discovered, it will be needed to assess whether the defect was a latent defect or a patent defect so it can be defined as to whether the buyer or seller is responsible to assume the consequences of the defect. You’ve purchased a home and after living there for a short period of time you have noticed that there are defects with the property. A patent defect is a defect that was both visible and present at the time you purchased the property. If you bought a house with cracked walls, a cracked foundation and/or visibly damaged roof just to name a few, you will most likely be responsible for any damages caused to you after your purchase. The idea is that if you saw the patent defects, or they were easily visible during your visits and you bought the property anyway, you implicitly accepted the responsibility for those defects. As a buyer, you are expected to exercise diligence and care when buying a property. This means you should inspect it yourself if you know what you are doing or have a home inspector do the inspection for you. I always recommend that buyers hire a qualified home inspector, as the buyer may be too emotionally charged, or excited to notice the finer details and an experienced home inspector knows how to look for warning signs.In most cases, a buyer will be responsible for patent defects.
But what if you couldn’t see these defects when you inspected the house? These are considered Latent Defects. A Latent defect is a defect that was not detectable even through a diligent home inspection, it was present at the time you purchased the property however it manifested itself afterwards. The seller of a property is responsible to sell you a property free from latent defects that would render it unfit for use or diminishing its usefulness. A Seller has an obligation to truthfully disclose the extent of any latent defects to the buyer at the moment of purchase if these defects are known to the seller. If the purchaser inspected the property and could not detect any important defects but a flaw existed at the moment of purchase manifesting itself later, the seller might be held responsible. However, if the sale was done on an “as-is” basis or “at-your-own-risk”, then the buyer will be responsible even for a latent defect. When buying or selling a property make sure you have experienced professionals by your side, this includes your Realtor, Home Inspector and Lawyer. I am happy to answer your questions regarding defects, or any other real estate related matter anytime!
Keeley Ward is a Broker with EXP Realty Brokerage serving Durham Region, Kawartha Lakes, Peterborough and the GTA. Keely believes in service, results, family and giving back. Her passions are her dogs and riding her motorcycle. 26
www.keeleyward.com
