Leasing License Practice Exam

Which type of defect must be disclosed if it is hidden and affects the property?

1. Visual defects

2. Latent material defects

3. Superficial defects

4. Common wear and tear

The correct answer is: Latent material defects

The correct choice is latent material defects. These are hidden defects that are not discoverable by a reasonably thorough inspection and can significantly affect the property's value or desirability. A latent defect might include issues such as structural damages, plumbing problems, or electrical issues that are not immediately visible. The requirement to disclose such defects is critical because they can impact the safety and functionality of the property, potentially leading to legal issues if they are not revealed. On the other hand, visual defects are readily apparent and can be easily seen during a property inspection. Superficial defects refer to minor cosmetic flaws that do not significantly impact the property's overall integrity or value. Common wear and tear involve normal degradation that occurs over time with regular use, which is generally expected in any property and does not require disclosure in the same manner as latent material defects. Hence, the necessity to disclose latent material defects lies in their potential impact on the property and the buyer's interests.