What does the term "latent defects" refer to in real estate?

The term "latent defects" in real estate refers specifically to hidden structural defects that are not discoverable by ordinary inspection. This means that these defects may not be apparent when a prospective buyer performs a typical inspection of the property, yet they can significantly affect the value and usability of the property. Latent defects can include serious issues like faulty wiring, plumbing problems, or issues with the foundation.

Understanding latent defects is crucial for both buyers and sellers, as they could lead to significant repair costs if discovered after the sale. Sellers are typically required to disclose known latent defects to potential buyers, as failing to do so could expose them to legal liability.

The other options describe different issues related to property but do not accurately define latent defects. Visible damages to the property are easily observed and thus would not be considered latent. Issues that arise after closing may not specifically relate to hidden defects, and cosmetic imperfections do not affect the structural integrity of a property but rather its aesthetic appeal.