When buying or selling a home, most people focus on the visible aspects—the layout, the finishes, and the overall condition. But what about the issues you CAN’T see? 🤔
That’s where material latent defects come into play. These are hidden problems that aren’t obvious during a typical home inspection—and they can lead to major headaches (and lawsuits) if not handled correctly.
So, who’s responsible? What do buyers need to watch for? And what must sellers legally disclose? Let’s break it down.
What is a Material Latent Defect?
A material latent defect is a problem with the home that:
- ✅ Is not visible through a reasonable inspection.
- ✅ Impacts the property’s value, safety, or habitability.
- ✅ Must be disclosed by the seller if they are aware of it.
These defects aren’t just minor issues—they are hidden problems that could significantly affect the home’s condition or resale value.
🔍 Common Examples of Material Latent Defects:
- 🏚️ A foundation crack hidden behind drywall.
- 🦇 A bat or rodent infestation that wasn’t properly resolved.
- 💧 A history of flooding or water damage that wasn’t repaired correctly.
- 🚨 Faulty electrical work that could pose a fire risk.
- ❄️ Mold growth in hidden areas due to past moisture issues.
If the seller knows about an issue like this and fails to disclose it, they could face legal action from the buyer down the road.
What Sellers Need to Know About Material Latent Defects
As a seller, you might be wondering: Do I have to disclose everything?
- 🔹 YES—if it’s a material latent defect that you knew about and a buyer wouldn’t reasonably discover during an inspection.
- 🔹 NO—if it’s a minor issue or something easily visible (like chipped paint or an old water heater).
✅ What You Should Do as a Seller:
- ✔️ Be honest—disclose any past or present material latent defects.
- ✔️ Keep records—if you fixed a major issue (like a foundation crack), save receipts and reports.
- ✔️ Get a pre-listing inspection—this can help you identify and address issues before listing your home.
🚫 Common Myths vs. Reality
Myth: “If I don’t mention it, I won’t be liable.”
Reality: If the buyer proves you knew about the issue and didn’t disclose it, you could be held legally responsible.
What Buyers Need to Watch For
As a buyer, you don’t want to move in and discover a major problem that wasn’t disclosed.
🔍 Here’s how to protect yourself:
- 🔍 Get a thorough home inspection—and don’t be afraid to ask questions.
- 📜 Review the seller’s disclosures carefully—if anything seems vague, get clarification.
- 🏡 Ask about past repairs—request documentation on foundation work, flooding, or major fixes.
- ⚖️ Consult a real estate lawyer—if something doesn’t sit right, get legal advice before signing.
If you find a defect after closing and believe the seller knew about it, you may have legal options. Speak with a lawyer to understand your rights and potential next steps.
Final Thoughts: Honesty & Due Diligence Are Key
Material latent defects aren’t just small surprises—they can be big legal liabilities for both buyers and sellers. Whether you’re selling a home or buying one, transparency and due diligence go a long way in avoiding costly disputes.
🎥 Watch real estate lawyer Asa Hegel break down the biggest risks and responsibilities when it comes to hidden home defects! ⚖️🏡
👉 And if you’re considering buying a foreclosure… you’ll want to see what’s next! Stay tuned for our next blog on foreclosure risks and legal must-knows! 🔥
📞 Contact Asa Hagel
Have legal questions about your real estate transaction? Connect with real estate lawyer Asa Hagel at:
- 🏢 Law Firm: Barr LLP
- 📍 Location: 10123 99 St NW, Edmonton, AB T5J 3H1
- 📞 Phone: (780) 414-5400
- 📧 Email: ahagel@barrllp.com
- 🌐 Website: barrllp.com
For expert legal guidance on buying, selling, or investing in real estate, reach out to Asa today! ⚖️🏡
