Which type of defect relates to incidents that could affect a buyer's perception of the property?

The correct choice addresses situations that can influence how a buyer views a property, particularly in terms of its desirability or reputation. Stigmatized properties are associated with negative events or circumstances that may not necessarily affect the physical structure of the property but can considerably sway public perception.

For example, if a property was the location of a crime or a tragic event, potential buyers might be deterred despite the property's actual condition being satisfactory. This means that the emotional or social context surrounding the property impacts buyers' decisions. Understanding stigmatized properties is essential for leasing agents to guide clients effectively and ensure all relevant information is considered in real estate transactions.

Conversely, latent defects refer to issues not readily observable that could lead to future problems but do not inherently alter perception. Material defects directly affect the property’s value or safety but might not have the public stigma attached. Physical defects are tangible issues with the building structure itself. Each of these aspects is significant, yet only the relevance of a property's history or reputation aligns directly with the concept of stigmatized property.