Ace the PSI New Jersey Real Estate Test 2025 – Unlock Your Property Power!

Latent defects refer to problems in a property that are not immediately apparent to the buyer or inspector. These defects exist but are hidden, which means they may not be discovered during a typical inspection or viewing of the property. Such issues could include structural problems, plumbing leaks behind walls, mold in hidden spaces, or electrical issues that are not visible upon a normal visual inspection.

Understanding latent defects is particularly important in real estate as it impacts the disclosure obligations of sellers and the due diligence responsibilities of buyers. Sellers are often required to disclose known latent defects to potential buyers, while buyers need to be vigilant in their inspections to uncover any hidden issues that could affect the property's value or their enjoyment of the property in the long term. This distinction helps ensure a fair transaction and protects the interests of both parties involved.