Latent Defect
A significant property defect hidden from ordinary observation, such as structural damage concealed by finishes.
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What does Latent Defect mean on the Texas real estate exam?
Answer: A significant property defect hidden from ordinary observation, such as structural damage concealed by finishes.
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Latent Defect definition
A latent defect is hidden and not readily observable through an ordinary walkthrough. A known foundation crack covered by new flooring is a common example.
Texas Occupations Code Section 1101.652 permits discipline when a license holder fails to disclose a known significant defect, including a significant latent structural defect.
Source basis
Definition checked against the official sources below on .
On the exam
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Tested in
Disclosures & Environmental (9 of 80 National)
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