### What is a latent defect in real estate? - [x] A potential problem that may be invisible at the time of purchase - [ ] A problem that is immediately apparent upon inspection - [ ] A defect only noticed during major renovation - [ ] An issue that only occurs after 10 years of ownership > **Explanation:** A latent defect refers to a problem that may not be visible or easily detectable at the time a buyer purchases a property. This could include hidden issues like termite damage or structural weaknesses that are not immediately obvious. ### Why is it important for a buyer to get a thorough inspection for latent defects? - [ ] To increase the value of the property - [ ] To negotiate a higher selling price - [x] To identify potential problems that are not immediately visible - [ ] To improve property aesthetics > **Explanation:** A thorough inspection helps identify potential latent defects which are not immediately visible. This allows the buyer to address any problems before finalizing the purchase, therefore safeguarding themselves from future issues and potential financial losses. ### Who should a buyer use to conduct a thorough inspection of the property? - [x] A professional home inspection company - [ ] A friend or relative with some construction experience - [ ] The real estate agent - [ ] The property's current owner > **Explanation:** Buyers should use a professional home inspection company for conducting a thorough inspection. Professionals are trained and equipped to detect latent defects that might not be noticed by untrained individuals. ### What can buyers include in the sales contract to protect themselves from latent defects? - [ ] A clause requiring a 50% down payment - [ ] A clause that guarantees a future property appraisal - [x] A clause protecting against undisclosed defects - [ ] A clause stating that no inspections are necessary > **Explanation:** Buyers should insist on including a clause in the sales contract that protects them from any defects not disclosed by the seller. This clause can help in the recovery of damages if defects are found post-purchase. ### Under what condition can the buyer recover damages related to a latent defect? - [ ] If the buyer fails to notice issues themselves - [x] If the seller knowingly misrepresents the property condition - [ ] If the buyer proceeds without inspection - [ ] If the defect appears after ten years > **Explanation:** The buyer can only expect to recover damages if the seller knowingly misrepresents the property's condition, blocks an inspection, or lies about problems. Simply failing to notice issues doesn't qualify for recovery. ### What happens if a buyer suspects problems but completes the transaction anyway? - [ ] The seller will be automatically held accountable - [x] The seller will not be held accountable - [ ] The buyer can sue the real estate agent - [ ] The property must be sold back to the original owner > **Explanation:** If a buyer suspects issues but goes ahead and completes the transaction anyway, the seller will generally not be held accountable afterwards for any latent defects found. ### What type of real estate defect might be considered "latent"? - [ ] A broken window - [ ] Peeling paint - [x] Termite damage - [ ] A clogged gutter > **Explanation:** Termite damage is an example of a latent defect because it might not be visible and can cause significant issues that only become apparent over time.