AgencyIntermediateDelaware Exam

What is a 'latent defect' and what are a Delaware seller's disclosure obligations regarding it?

ASimply a defect that would already be clearly visible to any reasonable buyer during a routine inspection, which is the standard approach used
BA hidden defect not discoverable by reasonable inspection — sellers must disclose known latent defects under Delaware's Seller Disclosure ActCorrect
CA defect in the property's title that is not immediately apparent
DA defect that only appears after major weather events

Why A hidden defect not discoverable by reasonable inspection — sellers must disclose known latent defects under Delaware's Seller Disclosure Act Is Correct

Answer B: A hidden defect not discoverable by reasonable inspection — sellers must disclose known latent defects under Delaware's Seller Disclosure Act

A latent defect is a hidden condition not discoverable through ordinary inspection — such as foundation issues concealed under finished flooring or a history of basement flooding. Delaware sellers are required to disclose known latent defects on the Seller Disclosure form.

Exam Tip: Agency

Agency questions are among the most tested on the exam. Focus on the difference between client and customer, and memorize the fiduciary duties (OLD CAR). Watch for questions that try to blur the line between a general agent and a special agent.

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