Material Latent Defects in Real Estate: What You Need to Know in BC

When buying a home in British Columbia, it's crucial to understand the difference between visible defects and those hidden from regular inspection. Some of these must be disclosed by the seller or their agent โ€” and failing to catch them could cost you thousands.

๐Ÿ”Ž What Is a Material Latent Defect?

A material latent defect is a hidden issue that cannot be discovered through a normal home inspection and that makes the property:

  • Potentially dangerous to occupants
  • Unfit for its intended use
  • Extremely costly to repair

These must be disclosed in writing to the buyer before entering into a contract. A Property Disclosure Statement (PDS) is often used but isn't legally required.

๐Ÿงฑ Examples of Material Latent Defects

  • Mould hidden behind walls
  • Cracks in the foundation
  • Undocumented renovations without permits
  • Flooding or fire damage repaired without disclosure
  • Buried oil tanks leaking under the yard

โš–๏ธ What Sellers Must Do

Sellers are legally required to disclose any known material latent defects to buyers. If they donโ€™t and the issue is discovered later, buyers may have legal recourse. Real estate professionals must also disclose these defects if theyโ€™re aware.

Learn More from BCFSA

Disclaimer: This information is provided for educational purposes only and should not be interpreted as legal advice.