Leasing License Practice Exam

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Termites are an example of what type of defect?

illegal defect
latent defect
material defect
obvious defect

The correct answer is: material defect

Termites are classified as a material defect because they can significantly affect the value and structural integrity of a property. A material defect refers to an issue that has a substantial impact on the property's condition and is important to a potential buyer's decision. When dealing with real estate transactions, material defects like termite damage can influence negotiations, pricing, and the overall desirability of the property. In contrast, latent defects are those that are not immediately observable and may not be discovered during a routine inspection, which is not the case with termite damage as it can generally be identified through visible signs. Illegal defects are related to violations of laws or regulations, while obvious defects are visible issues that any prospective buyer could see, which might not apply to termite damage if it is hidden within walls or structures. Therefore, labeling termites as a material defect emphasizes their significance in real estate assessments and transactions.