A property problem that is obvious or readily discoverable upon a reasonable inspection.
Why Patent Defect matters on the exam
This term belongs to Property Disclosures. The questions below are real items from Freehold's bank that use it - each one cites its source.
Exam questions using Patent Defect
Every Freehold question shows why the right answer is right — and cites its source.
A seller knows the basement floods every spring, but the damage is not visible during a showing. This is an example of:
A patent defect that needs no disclosure
A latent defect that must be disclosed
Merely a stigma that cannot be disclosed
Normal wear and tear
Show answer & explanation
A latent defect that must be disclosed — A latent defect is a hidden problem not discoverable by ordinary inspection. Known latent defects that materially affect the property must be disclosed, since buyers cannot reasonably discover them on their own.
Source: PSI National Real Estate Exam Content Outline §6 Property Disclosures
A seller knows the home's electrical wiring behind the walls is outdated and has caused sparking, but this is invisible without opening the walls. How should this be classified and handled?
It is a patent defect that needs no special disclosure
It is a stigmatized condition exempt from disclosure rules
It only needs disclosure if the buyer's inspector specifically tests the wiring
It is a latent defect, and the seller's known information about the sparking hazard should be disclosed
Show answer & explanation
It is a latent defect, and the seller's known information about the sparking hazard should be disclosed — Because the hazardous wiring is hidden inside the walls and the seller has actual knowledge of the sparking, it qualifies as a latent defect that must be disclosed.
Source: PSI National Real Estate Exam Content Outline §6 Property Disclosures
A patent defect is one that:
Can only be found using specialized testing equipment
Is readily observable through ordinary inspection, such as a cracked window or missing handrail
Is a defect the buyer is legally presumed never to see
Refers exclusively to environmental hazards such as radon, asbestos, or lead-based paint in the home
Show answer & explanation
Is readily observable through ordinary inspection, such as a cracked window or missing handrail — Patent defects are visible or otherwise obvious problems that a buyer could reasonably discover simply by looking at the property during a normal walk-through.
Source: PSI National Real Estate Exam Content Outline §6 Property Disclosures
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