Lakefront Cottage: Hidden Underground Storage Tank

What type of defect would the hidden underground storage tank be considered?

a. Latent defect

b. Patent defect

Is Rob required to disclose the presence of the underground storage tank?

a. Yes

b. No

Answer:

The hidden underground storage tank on Rob's property is considered a latent defect. Rob may be required to disclose this defect to potential buyers, depending on the laws in his jurisdiction.

The discovery of an old underground storage tank on Rob's property would be considered a latent defect. A latent defect is a hidden issue that would not be easily discovered through a visual inspection. In many jurisdictions, sellers are legally required to disclose any known latent defects to potential buyers.

Rob, as the seller, would likely be required to disclose the presence of the underground storage tank to potential buyers, depending on the laws in his jurisdiction. Failure to disclose a known latent defect could result in legal repercussions.

An example of a relevant law is the principle of 'caveat emptor,' which means 'let the buyer beware.' However, many jurisdictions have shifted towards 'caveat venditor,' which means 'let the seller beware.' This shift places more responsibility on the seller to disclose any known defects to protect the buyer.