What defines latent defects in real estate transactions?

Latent defects refer to issues within a property that are not visible or apparent during a typical or reasonable inspection process. These are hidden problems that could significantly affect the property's value or usability but are not easily detectable by standard examinations.

In real estate transactions, the distinction between latent and patent defects is crucial. A latent defect can lead to significant liability for sellers if they do not disclose these issues prior to the sale, as it may impact the buyer's decision and the overall transaction. For example, structural integrity problems behind walls or hidden water damage might fall into this category. The key characteristic of latent defects is their concealment; they require specialized knowledge or thorough investigation to uncover.

The other options focus on observable issues or defects that are easily seen, which does not align with the definition of latent defects. Hence, understanding that latent defects are those which are not detectable through normal inspection processes is essential in real estate law and practice.