Humber/Ontario Real Estate Course 3 Exam Practice

What constitutes a latent defect requiring disclosure?

1. Minor cosmetic defects

2. Defects detectable by ordinary inspection

3. Serious issues not easily found by buyers

4. Historical property changes

5. Unrecorded property liens

6. Aesthetic imperfections

The correct answer is: Serious issues not easily found by buyers

The correct answer focuses on serious issues that are not easily found by buyers, which is the essence of a latent defect. Latent defects are hidden problems that are not readily observable during a typical property inspection. These could include structural issues, plumbing problems, or environmental hazards that could significantly impact the value or safety of the property. Buyers need to be made aware of such defects because they could affect the usability or enjoyment of the property in ways that are not immediately apparent. Disclosing these defects is a legal requirement and ensures transparency in the transaction, protecting both the buyer and the seller in the long run. Other options represent aspects that do not qualify as latent defects. Minor cosmetic defects or aesthetic imperfections are typically superficial and would not impact the property's core functionality. Defects that can be detected through a standard inspection would not fall under the category of latent defects either. Likewise, historical changes to the property and unrecorded liens refer to different issues that wouldn't necessarily relate to hidden problems affecting the property’s condition or value.