How can latent defects affect property transactions?

Latent defects refer to hidden flaws or issues in a property that are not readily apparent during a typical inspection. These defects can significantly impact property transactions because they affect the buyer's decision-making process and the overall value of the property.

In many jurisdictions, including Saskatchewan, sellers are legally obligated to disclose known latent defects to potential buyers. This is important for maintaining transparency and ensuring that buyers can make informed decisions. Failure to disclose such defects can lead to legal repercussions for the seller, such as the buyer seeking a remedy for misrepresentation or even rescinding the sale altogether.

By requiring disclosure of latent defects, the transaction process is more transparent, and buyers can assess the property's true condition, leading to a smoother negotiation and potential resolution regarding the sale. Therefore, understanding the implications of latent defects is crucial for both sellers and real estate professionals engaged in property transactions.