Humber/Ontario Real Estate Course 3 Exam Practice

Which of the following is considered a material latent defect?

1. A leak in the roof that is visible during a house tour

2. A history of basement flooding that is not disclosed and not easily seen by an inspection

3. Worn-out carpet in the living room

4. A cracked window pane in the attic

The correct answer is: A history of basement flooding that is not disclosed and not easily seen by an inspection

A material latent defect refers to a significant issue with a property that is not immediately visible or obvious and affects the property's value or desirability. In this context, a history of basement flooding that is not disclosed and not easily identified during an inspection qualifies as a material latent defect. This is because such flooding can lead to serious structural issues, mold growth, and damage to personal belongings, all of which are critical concerns for a potential buyer. The other options describe issues that are either visible or less significant in terms of material impact. For instance, a leak in the roof that is visible during a house tour is something that buyers can observe directly, meaning it doesn't meet the criteria for a latent defect. Worn-out carpet in the living room is a cosmetic issue and generally doesn't impact the structural integrity of the home. A cracked window pane in the attic, while a defect, is also likely visible and would be less impactful compared to serious long-term issues like flooding.