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Real estate glossaryNational exam concept

Latent defect

A latent defect is a property defect that is hidden or not readily discoverable through a reasonable ordinary observation or inspection of the type described in the question.

Exam area: Property Disclosures

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What does “latent defect” mean in real estate?

A latent defect is a property defect that is hidden or not readily discoverable through a reasonable ordinary observation or inspection of the type described in the question.

How is “latent defect” different from the closest wrong answer?

Latent describes visibility. Patent describes a defect that is observable or discoverable. Material describes importance, so a defect can be both latent and material.

What is the Georgia-specific rule?

Georgia licensees are not general property inspectors, but actually known adverse material facts can trigger disclosure duties under BRRETA even when the defect is hidden from a buyer.

Worked exam example

Scenario

A seller and listing broker know that a finished wall conceals serious recurring water damage that an ordinary walkthrough will not reveal.

What is the most common exam trap?

Trap correction

Hidden does not automatically prove fraud. The question must also establish knowledge, duty, misstatement, or concealment as required.

Original exam check

Apply the definition

A seller knows the roof decking under brand-new shingles is badly rotted, and no ordinary walkthrough or standard inspection would reveal it. The buyer's inspector sees only the new shingles. How is this defect best classified?

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Related terms to learn next

Patent defect

A patent defect is a property defect that is open, observable, or discoverable through the reasonable level of observation or inspection described in the transaction.

Material defect

A material defect is a problem with the property or its improvements that would significantly affect value, safety, intended use, or a reasonable buyer's decision.

Adverse material fact

An adverse material fact is significant information that is unfavorable to a party's interests, such as an actually known condition materially affecting the physical condition of the property or its immediate neighborhood, as described by Georgia law.

Material fact

A material fact is information a reasonable party would consider important when deciding whether or on what terms to enter a real estate transaction.

Recommended next complete lesson

Continue with Property Disclosures complete lesson. It places this term inside the full rule, worked examples, exam traps, and mixed practice required for mastery.
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