During a showing, a buyer sees cracked exterior walls and a visibly settling foundation. How is this condition classified?
Correct Answer
C) Patent defect
A patent defect is one that is plain to see on an ordinary walkthrough, while a latent defect is hidden and surfaces only through investigation. Cracked walls and a foundation that is visibly settling are apparent to the buyer, so they are patent. The distinction matters because a seller and listing agent must disclose known latent defects, whereas a buyer is expected to take account of conditions that can be seen.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The fiduciary obligations owed by a listing agent to the seller, including marketing the property, presenting all offers, and protecting the seller's confidential information.
A practice where the agent or brokerage represents only one party in a transaction — either the buyer or the seller, but never both.
A relationship where a listing broker authorizes other brokers to act as agents of the seller, extending the seller's agency relationship to cooperating brokers.
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