Humber/Ontario Real Estate Course 3 Exam Practice

Who is typically responsible for discovering latent defects in a property?

1. The seller.

2. The buyer.

3. The lender.

4. The listing agent.

5. The home inspector.

6. The real estate board.

The correct answer is: The buyer.

The buyer is typically responsible for discovering latent defects in a property. This responsibility hinges on the principle that buyers have a vested interest in ensuring the property they are purchasing is in good condition and free from hidden defects that could affect its value or livability. While the seller is obligated to disclose known defects, latent defects may not be immediately observable, and it falls upon the buyer to undertake appropriate due diligence, which often includes hiring professionals like home inspectors to assess the condition of the property thoroughly. The buyer's responsibility encourages them to actively participate in evaluating the property before making a commitment, thereby safeguarding their investment. In situations where defects are discovered post-purchase, buyers may find it challenging to hold sellers accountable unless those defects were disclosed prior to the sale. Each of the other parties involved, including the seller, lender, listing agent, and real estate board, may have roles in the transaction, but their responsibilities towards identifying latent defects are not as direct as that of the buyer. The home inspector plays a critical role in helping buyers identify such defects, yet it is ultimately the buyer's duty to engage those services and make informed decisions based on the findings.