This month’s newsletter deals with how the rule of the principal of buyer beware relates to latent defects. When selling a house the seller has no obligation to disclose any patent defects. “Patent” is generally defined as visible or obvious defects. Hence the term “buyer beware” and why buyers should get house inspections done to find such defects. If they don’t find them they cannot afterwards complain to the seller. However with latent defects the rules are a bit more complicated. A latent defect is something that is hidden or not easily visible and that substantially affects the value of the property or renders it unfit for habitation.. If a seller does not know that a latent defect exists, e.g. cracks in the foundation which then leak after closing, then the seller is not liable to the buyer. But if the seller knows about them and does not disclose them, then the seller is liable to the buyer. I welcome the opportunity to quote on your client’s conveyance. As well I do commercial real estate work.

The first item is a recommendation not to have the closing of a sale on a Friday, especially before a long weekend. If the closing funds are not delivered early enough on Friday your client ends up paying the per diem interest for an extra 2 – 3 days. Trust me they are not happy when they hear that this could have been avoided by closing a day earlier. I had one client who was so mad that I spoke to the agent and suggested he pay the extra per diem to keep his client from telling everyone what a bad job he had done.