What does 'latent defect' refer to in real estate?

The term 'latent defect' in real estate specifically refers to defects or issues in a property that are not easily observed or discovered during a standard property viewing or inspection. These defects can be hidden or concealed, making them difficult for a buyer or inspector to notice right away. For example, a latent defect could include serious structural problems or issues with electrical systems that are not apparent without deeper inspection or investigation.

This concept is particularly important because sellers can have legal obligations to disclose latent defects, as they impact the decision-making process of potential buyers. Understanding what constitutes a latent defect helps buyers protect their interests and encourages sellers to be transparent about any known problems with the property.

In contrast, the other choices focus on issues that are more easily visible or are related to financial obligations rather than structural problems that are hidden. Problems seen during a property viewing, issues from renovations, outstanding taxes, unpaid utility bills, and minor repairs all relate to visible or explicitly known conditions, which do not fit the definition of a latent defect.