Latent Defect
A significant property defect hidden from ordinary observation, such as structural damage concealed by finishes.
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.
On the exam
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Disclosures & Environmental (8% of the exam)
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This definition is Texas real estate exam-prep education, not legal, tax, or professional advice. Verify current rules against the official source before relying on them for a real transaction. Back to the full glossary.