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February 28, 2018

Latent Defects


Word of the day

Latent Defects

Hidden structural defects, known to the seller but not to the purchaser and not readily discoverable by inspection. The seller or the broker who is aware of such defects, such as termite damage, leaking roof, a defective water heater, or a dangerous stairway behind a basement door, must disclose them to the prospective purchaser. Failure to disclose such information is a tacit misrepresentation and may be grounds for the buyer to rescind the contract.

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