What does the term 'latent' refer to in real estate?

The term 'latent' in real estate primarily refers to defects that are hidden and not immediately observable. These can include issues such as mold behind walls, structural problems within a foundation, or plumbing issues that aren't apparent without further investigation. Latent defects can significantly affect the value and safety of a property, often becoming apparent only after a thorough inspection or when they have already caused damage.

Understanding latent defects is crucial for both buyers and sellers in real estate transactions. Sellers are typically required to disclose known latent defects, while buyers are encouraged to conduct comprehensive inspections before finalizing a purchase. This helps mitigate the risks associated with undisclosed issues that might only surface later, leading to costly repairs or legal complications.

In contrast, other terms such as visible defects refer to problems that can be easily seen and identified. Future potential defects imply issues that may arise down the line but are not currently present. Legal issues pertain to title problems or zoning disputes rather than physical conditions associated with a property.