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When purchasing a resale property in Ontario, it is imperative to be aware of any defects that may be present on the property. Although some defects may be visually obvious, other defects may not be so apparent. These two types of defects are often referred to as either Patent or Latent Defects. In this blog, I hope to explain the difference between the two.

A Latent Defect refers to issues that are not clearly observable upon reasonable inspection and/or walk through of the property. These defects are typically not “in the open” and are concealed, making them challenging for buyers to identify without professional assistance. Common examples of Latent Defects include structural damage, plumbing, or electrical issues. In Ontario, sellers are obligated to disclose known Latent Defects to their perspective buyers. If a seller fails to disclose a Latent Defect, they can be liable for any damages that the buyer may have incurred because of such failure to disclose.

A Patent Defect on the other hand, is a visually observable defect. Such defects are more obvious and would typically be discovered by a buyer without disrupting the property, i.e., a hole in the wall, broken windows, etc.  A seller is not obligated to bring Patent Defects to the attention of a buyer, as the notion of the “caveat emptor- buyers beware” is still prevalent in Ontario. As such, a buyer assumes the risk of a defect that is clear and/or visually observable. It is vital to note that sellers must not take steps to deliberately hide such defects from perspective buyers.

When buyers visit a property, they are considering purchasing, understanding the distinction between these two defects could be essential. By being well-informed about perspective defects, both buyers and sellers can navigate property transactions with greater confidence and transparency. In summary, Latent defects are hidden issues that are not easily visible (requiring disclosure by the seller), while Patent defects are more observable deficiencies. Buyers should always exercise due diligence by conducting adequate inspections and/or seeking professional advice to identify defections on a property. Sellers, too, should fulfill their obligations to avoid legal ramifications and are encouraged to disclose defects to their buyers to maintain an ethical and transparent real estate transaction.

If you have any legal questions regarding the condition of a property you are buying or selling, please do not hesitate to contact us at (905) 270-6660 or e-mail us at: Info@kormans.ca.

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Daniel Kuchuk is an Associate Lawyer at Kormans LLP. You can reach Daniel here: dkuchuk@kormans.ca.

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