Latent Defect

Latent Defect

Latent Defect

Latent defects are concealed within the structure and not apparent on reasonable inspection. The discovery rule typically delays accrual until the defect is or should have been discovered.

Statutes of repose still impose an outer limit.

Alternative Names:

Hidden Defect, Concealed Defect

Why it Matters?

The distinction from patent defects determines both accrual and acceptance, since a patent defect that an owner accepted without objection may be waived while a latent one is not. Water intrusion, structural deficiencies behind finishes, and subsurface conditions are the recurring latent categories. Statutes of repose remain the outer boundary regardless of discovery, which is what ultimately closes exposure on older projects.

Frequently asked questions

Why does latency matter for limitations?

Why does latency matter for limitations?

Because the discovery rule delays accrual until the defect is or should have been discovered, unlike a patent defect apparent at completion.

What limits the exposure period?

What limits the exposure period?

The statute of repose, which imposes an outer boundary regardless of when the defect was discovered.