Definition - What does Latent Defect mean?
A latent defect is a defect in a manufactured product that is not able to be seen by the naked eye, but that makes the product operate ineffectively or not at all. Motor vehicle recalls occur due to the finding of a latent defect.
The term is also used to describe property that has a defect that cannot be seen, such as faulty wiring. If a tenant is injured by a latent defect that the landlord knew about, the landlord would be responsible for the damage and injury to the tenant.
Justipedia explains Latent Defect
Latent defects can also refer to a problem within the title of a property that creates liens or other obligations on the property. If a title has a latent defect, then the transfer of the property within any transaction could be considered null and void. Financial compensation is the usual course of remedy for latent defects.