What is signified by the term "latent material defect"?

The term "latent material defect" refers to hidden issues that affect a property's value or functionality, which are not immediately apparent upon a visual inspection. These defects are significant because they can impact the safety, livability, or value of the property, yet they often go unnoticed until after a problem arises.

For example, latent defects might include issues such as structural problems, plumbing issues, or mold that are concealed behind walls or under floors. Since these defects are not visible to the naked eye, it is crucial for leasing agents, landlords, and buyers to conduct thorough inspections or obtain disclosure from sellers about any known latent defects.

Understanding latent material defects helps to protect the interests of all parties involved in a real estate transaction and ensures that they are fully informed about any potential risks associated with the property.