Under what condition might a contractor be liable for not disclosing certain defects?

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Study for the University of Central Florida REE3433 Real Estate Law Exam. Engage with flashcards and multiple choice questions, with hints and explanations for each question. Prepare effectively for your test!

A contractor could be liable for not disclosing certain defects particularly when a defect is latent due to negligence. Latent defects are issues that are not immediately observable during a typical inspection and may remain hidden from view until they manifest in a significant way. If a contractor is negligent in their duty to properly inspect, maintain, or construct a property, and as a result, a latent defect is present that they are aware of or should reasonably have discovered, they may be held liable for failing to disclose that defect to prospective buyers or tenants.

This liability stems from the duty of care that contractors owe to their clients. If they are aware of a hidden defect that could affect the safety or value of the property but do not inform the buyer or fail to take appropriate measures to rectify the defect, their negligence in this context can constitute grounds for legal liability.

Visible flaws or defects do not fall under this scenario, as these would be apparent to a reasonable observer; therefore, the contractor would not have a duty to disclose what is already visible. The buyer's failure to conduct an inspection shifts some responsibility to the buyer, as it is often expected that buyers will conduct their own due diligence. Selling a property below market value does not inherently create liability for defects unless they