Definition
A latent defect is a hidden problem not visible during casual inspection—like foundation cracks, water damage, or asbestos in insulation. Professional inspections help find these.
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Latent defects are problems that exist but are not readily apparent to a casual buyer or even a professional inspector without specialized testing. Examples include hidden foundation cracks, previous flooding in crawl spaces, or asbestos in insulation. Sellers must disclose known latent defects but may not be liable for defects they're unaware of. Buyers can inspect for latent defects, and discovery of previously unknown latent defects may provide grounds for rescission or damages. Title insurance typically does not cover latent defects; home inspection reports are the primary protection.
Pro Tip
Professional inspections protect against latent defects.
Example
The inspection revealed latent defects including water damage hidden behind walls.