Don't Get Spooked by Latent Defects!



It’s that time of year when pumpkins glow, black cats roam, and ghost stories become the topic of campfire conversations – but latent defects in real estate is something that should give homeowners a scare year-round! These hidden issues can sneak up on you after you’ve moved into your dream home, and trust us, that’s one trick you don’t want.

Here’s what you need to know to avoid getting spooked by these concealed real estate issues.

What Are Latent Defects?

Latent defects are like the hidden skeletons in your home that you can’t see at first glance. They refer to issues that aren’t obvious during a home inspection or a casual walk-through. Unlike patent defects, those you can see right away, like cracks in the walls or broken windows, latent defects are usually much more serious and may remain out of sight until they choose the most inconvenient moment to reveal themselves, often after you’ve already moved in!

Latent Defects’ Frightening Features
Latent defects are sneaky, often not visible to the naked eye and might even escape a thorough inspection. Think of them as the house’s best (and worst!) -kept secrets. These hidden issues are usually serious, affecting things like the structure of the home or major systems - like cracks in the foundation or mold issues hidden behind walls, or faulty plumbing and electrical work. They’re not just small annoyances; they are problems that can be potentially dangerous, and costly to fix. 

The Seller May be Unaware
Sellers might not always be aware of what lurks in the shadows; however, if they do know, and don’t disclose that information, that’s where things get serious. Not disclosing known issues could land them in legal hot water.

How Buyers can Protect Themselves

A Good Home Inspection is the Best Defense

Before you move into your dream home, make sure to bring in a professional to seek out any potential issues. A reputable home inspector is your best defense against the unseen terrors. While inspectors can’t always uncover every hidden problem, they’ll increase your chances of catching something before it’s too late.

Find a Suitable Fix

If your inspection reveals something spooky, don’t be afraid to confront it! Go back to the sellers and ask questions. Has this mysterious issue been something that has been causing complications for them? You might be able to request a remedy or renegotiate the selling price before moving in. But beware—if the risk is too high, don’t be afraid to walk away!

What If You Find a Defect After You Move In?
Don’t panic – if a latent defect rears its ugly head after you move in. Sellers are legally bound to disclose known defects, and if they have hidden a menacing secret, you could be entitled to compensation or other remedies to make things right. Working with a good real estate lawyer can help ensure you are not left with unexpected expenses.

Advice for Sellers


When in Doubt, Disclose
As a Seller, you are required by law, to disclose material latent defects. This includes not just physical defects, but also lack of permits for changes to the property - such as unpermitted do-it-yourself renovations; or any government or local authority notices that affect your property - such as an environmental notice in your area. Playing hide-and-seek with these issues could come back to haunt you in court! 

Ensure You Are Compliant
Building and development permits are issued by the municipality to ensure safety, structural integrity, acceptable use and occupancy of the space, as well as conformance with zoning and development regulations. Its always best to get appropriate permits at the time of development; however, if you ghosted the municipality when you did the work, there is still time to make things right. Contact your local authorities and clear up any lingering issues of non-compliance. Just remember— you can sell your home without permits, providing proper disclosure; however, it might scare off some buyers and haunt your selling price!

Be Open and Honest About Issues You Know About
Before signing the Purchase Contract, it’s wise to seek legal advice to ensure you’re crystal clear on your disclosure obligations. Being open and transparent about any known issues is the best way to avoid being surprised by future disputes. There’s nothing worse than a buyer coming back with a lawsuit after discovering a hidden problem you tried to bury! 

Know Your Rights and Responsibilities

Whether you’re a buyer or a seller, it’s vital to understand your rights and responsibilities when it comes to the hidden issues of latent defects. Buyers, don’t get spooked! Do your due diligence with a thorough investigation, including professional inspections that can help unearth any lurking dangers. Sellers, be transparent—disclose any known issues before they come back to haunt you.To help avoid unexpected scares in your real estate deal, contact the Jason Rustand Team. We’ll help you handle the complexities of latent defects and ensure your transaction remains a delightful (not frightful) experience.