What is 'latent defect' disclosure and what does it require of a seller?

LATENT DEFECT: A material defect that is hidden, not visible or discoverable through reasonable inspection. PATENT DEFECT: visible and obvious. Sellers are NOT required to disclose patent defects (buyer can see them). Sellers ARE required to disclose KNOWN LATENT DEFECTS because: if the seller knows about a hidden defect and fails to disclose, it constitutes fraudulent concealment — a common law fraud; state Transfer Disclosure Statements (TDS) require sellers to disclose all known material conditions. Examples of latent defects: hidden water damage behind walls; prior mould remediation; underground oil tank; foundation crack hidden by panelling; history of flooding not apparent during a dry-weather visit. The seller cannot claim 'I thought the buyer would find it in the inspection' for a latent defect — disclosure is required regardless of whether an inspector might find it.