Real Estate Term of the Day: Latent Defects
LATENT DEFECTS – flaws that are hidden but are apt to surface later. (Barron’s Dictionary of Real Estate Terms)
In a Colorado real estate transaction, a seller typically uses the Colorado Real Estate Commission approved Seller’s Property Disclosure to disclose material latent defects. The Seller’s Property Disclosure has 13 sections regarding the disclosure of improvements to the land (the home) and the disclosure of general items pertaining to the property:
- A. Structural Conditions
- B. Roof
- C. Appliances
- D. Electrical & Telecommunications
- E. Mechanical
- F. Water, Sewer & Other Utilities
- G. Other Disclosures – Improvements
- H. Use Zoning & Legal Issues
- I. Access, Parking, Drainage & Signage
- J. Water & Sewer Supply
- K. Environmental Conditions
- L. Common Interest Community – Association Property
- M. Other Disclosures – General
LESLIE MONACO REAL ESTATE 