National Real Estate Exam (PSI)Property DisclosuresMedium
During a walkthrough, a buyer notices a large crack running across the living room ceiling. This is an example of what type of defect?
- AAn environmental hazard requiring EPA disclosure
- BA material fact that only the seller is legally required to identify
- CA latent defect, because it is hidden from view
- DA patent defect, because it is readily observable upon reasonable inspection
Show answer & explanationAnswer & explanation
Correct answer: D. A patent defect, because it is readily observable upon reasonable inspection
A patent defect is one that is visible and discoverable through ordinary observation or a reasonable inspection, unlike a latent defect which is hidden and not easily detected. A visible ceiling crack falls into the patent category.
Why the other options are wrong
- A. A structural crack is not an environmental hazard category.
- B. Both buyers and sellers may need to note observable issues, but this doesn't define defect type.
- C. Incorrect — latent defects are hidden, not obviously visible.
Patent vs. Latent Defect
A patent defect is visible/discoverable through reasonable inspection; a latent defect is hidden and not easily detected, often requiring specific seller disclosure.
- Patent = obvious upon inspection
- Latent = hidden, known only to seller/insiders
- Sellers have a stronger duty to disclose latent defects
Memory trick: Patent you can spot; latent stays hidden till it's not.