Patent, Latent and Psychological Defects

So you want to list your house and you want to know what types of issues you have to or do not have disclose to a potential buyer. We talk about 3 types of defects:

1) Patent Defects, these are problems with the house that are minor like a broken window, damaged drywall, possible asbestos wrapping around a pipe, knob and tube wiring, missing roof shingles and so on. None of these issues will make the house inhabitable right!

2) Latent Defects, Now these are major issues with a house or property that would make the house not safe to live in or an issue that would have to be seriously looked at. These can be anywhere from a foundation issue, mold behind walls, structural issues, grow op, or anything that is not visible or detected through a home inspection.

3) Phycological Defects, these are issues that can be deemed more of a stigma with a house or property. Things like Deaths, suicides or murders that have taken place at the home. Also issues with direct neighbours can be problems with buyers like, persons on parole, sex offenders, gangs etc…
These issues are not deemed to be ones that the seller has to disclose.

So at the end of the day patent defects or phycological defects do NOT have to be disclosed…UNLESS they are asked. Latent defects must be disclosed to the listing agent prior to listing. These problems will be disclosed to all agents and buyers that view the property.

We have so much information at our fingertips these days, so make sure you use them.
GOOGLE GOOGLE GOOGLE….use this amazing tool for street view, and satellite views. Google the address to see if any police reports were made on the house. Go tot he police station and ask them to run a check on a house. Knock on the neighbours and ask questions. Ask your insurance company to run a report on the house to see if any claims come up.

You can also write into the offer “Is the seller aware of any foundation issues, deaths, suicides or murders…If it’s in the offer the seller must tell the truth.

Hope this tip helps.

Have a great day!

Rich