The first thing which should be said is that when speaking of ‘Latent Defects’ we mean hidden defects which could not have been possibly identified by an ordinary inspection of the thing in question during the time of sale.
A couple of examples include;
- An individual buys a car and two weeks later, the car engine starts to seize, therefore rendering the car unable to be used.
- An individual buys an apartment, and he later discovers that the roof needs serious maintenance due to serious structural problems.
- An individual decides to buy a computer, and days after, the computer’s performance starts to deter.
The hidden defects must be present at the time of sale, and when the said hidden defects are discovered, the law propounds the buyer two remedies to pursue in court:
- The seller can either take back the thing in question and refunds the full price; or
- The seller refunds the difference of the price between the cost of the thing in question, taking into consideration the defect and the actual price paid.
In this regard, there are time frames within which an action may be sought against the seller. The law prescribes the time of 1 year from when the property was purchased; or 1 year from when it was possible for the seller to discover such hidden defect. This action can be brought even if the seller can prove that he was unaware of the hidden defect.
If it results that the seller was aware of the hidden defect, but he did not make known to the buyer the said defects, the seller would be liable in damages.
Given that the law prescribes the remedy for latent defects, there is no need to have it specified in the contract of sale, nonetheless, for this warranty to be applicable, the parties must have expressly agreed to waive such clause.
Disclaimer: Nothing in this post should be taken as legal advice, and no action should be taken based on it. Please feel free to contact us at info@elluladvocates.com if you need any additional information or legal support.
