Practice and liability
Latent defect
A hidden defect a buyer would not discover on a reasonable inspection
A cracked foundation behind finished walls, a septic field that fails only under load, contaminated soil. Known latent defects must be disclosed precisely because the buyer cannot find them; a patent defect, visible on inspection, is a different matter.
How the exam asks about it
"Known" is doing the work. The duty is to disclose what the seller or licensee actually knows, not to inspect and discover on the buyer’s behalf.
Related terms
Sitting the license exam? Find out what you actually know.
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