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Latent and Patent Defects

Posted July 15th, 2008 under pitfalls, say what?, smart selling.

If you plan to put your home on the market, it's essential to understand these terms, or you risk financial damage.

There are two kinds of defects that can exist in a home that is being sold. A patent (pay-tent) defect is one that would be “patently obvious” to a casual observer. For example, missing floor tiles, a broken window, or a badly stained carpet might all be considered patent defects.

On the other hand, a latent (lay-tent) defect is one that is not immediately obvious, but is noticed later on. This often happens when problems are obscured by furniture or stored possessions, or if there are problems within the walls.

When your home is put on the market, your Realtor has an obligation to “discover and disclose” any defects. Sometimes, people do not mention a defect because they believe it is obvious. Unfortunately, even if you believe something is easily seen (a patent defect), your buyer may later claim it as a latent defect, and sue for compensation.

If your Realtor points out all defects, there is no way for the buyer to claim them as latent defects later. Your Realtor can only do this if they are made aware of all defects, so always tell your Realtor everything you know about your property, both good and bad! Even if you think something is obvious, mention it anyway — it could save you money later!

Got a question about a legal term or contract detail? Just ask me, I'll be happy to help.