Humber/Ontario Real Estate Course 3 Exam Practice

Which of the following is NOT considered a latent defect in a property?

1. A Hidden Mold Issue

2. An Underground Oil Tank

3. A Structural Issue Known to the Seller but Not Visible

4. A Non-Working Furnace During the Summer

5. A Crack in the Foundation Hidden Behind Drywall

6. A Leak in the Roof Discovered During a Rainstorm

The correct answer is: A Non-Working Furnace During the Summer

A non-working furnace during the summer is indeed not considered a latent defect because latent defects are issues that are not readily observable or discoverable by a reasonable inspection. They typically pertain to problems that affect the property's value or usability and are often concealed or hidden from view. In contrast, a non-working furnace is an operational issue that can usually be easily identified, especially if the property is being shown during a time when heating is needed, such as in the winter months. The fact that it is summer does not exempt the furnace from being inspected or tested; prospective buyers or their agents might reasonably conclude that the heating system’s operation can be verified during a showing at any time of the year. If it doesn’t work when it is tested, it is an obvious defect rather than a hidden or latent one. Latent defects typically include conditions such as hidden mold issues, underground oil tanks, structural problems that the seller knows about but do not manifest visibly, hidden cracks behind drywall, and leaks in the roof that are revealed only during specific weather conditions, as they all pose risks or issues that are not immediately detectable by potential buyers.