Buyers are now more likely to sue post-closing if they feel that have “lost” money through non-disclosure of latent defects.
Stigma – is a negative perception of a property for reasons unrelated to the appearance or function of the property (ie; a ghost – does NOT need to be disclosed) – Caveat Emptor Applies (Buyer Beware).
Patent Defect is an obvious flaw, that would be discovered by a superficial inspection of the property by an ordinary purchaser, for example, a hole in the wall, or a crack on the side of the home. (This does NOT need to be disclosed) – Caveat Emptor Applies.
Latent Defects – one that is NOT discoverable by a potential buyer through reasonable inspection or inquiries and must be material in that the property is rendered dangerous or uninhabitable (BUYER REQUIRED TO DISCLOSE)
Material Latent Defects – are defects required to be disclosed by the LICENSEE under their Real Estate Rules.
My thanks go to Peter Borszcz of Phil Law in Kelowna for this timely reminder today!