A more thorough explanation:

A latent defect is a hidden or concealed problem that cannot be easily discovered through normal observation or inspection. This term can apply to both personal property, like a lawnmower with a hidden clutch problem, and real property, like a piece of land with a hidden title defect or asbestos in ceiling tiles.

If someone is harmed by a latent defect, they may be able to recover damages or receive a refund or replacement. In contrast, a patent defect is one that can be easily discovered through normal inspection.

There are protections against latent defects in both real and personal property sales. For example, when buying real property, the buyer is usually responsible for examining the property before purchase and taking responsibility for its condition. However, if the seller conceals or fails to disclose a latent defect, the buyer may be protected from the consequences of the defect. Similarly, when buying goods, the buyer may be able to revoke acceptance of the goods if a hidden defect is discovered.

For example, if someone buys a house and later discovers that there is a hidden termite infestation that the seller knew about but did not disclose, the buyer may be able to recover damages for the cost of repairing the damage caused by the termites. Similarly, if someone buys a car and later discovers that there is a hidden problem with the engine that the seller did not disclose, the buyer may be able to return the car for a refund or replacement.