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what is a hidden defect a hidden defect is an important flaw or defect affecting the quality of the property that you own how do you know if you have a hidden defect the courts have established five criteria to help guide you in understanding if a hidden defect affects your property criteria number one the defect existed at the time of the transaction this means that the defect was already affecting the property prior to the sale so prior to the moment that the buyer and seller proceeded at the notaries criteria number two the defect was not apparent prior to the sale and cannot have been seen with a simple inspection this means that neither the buyer nor his inspector could have noticed the defect prior to finalizing the sale criteria number three the defect is affecting the quality of the property this means that the buyer would not have bought the property had he known that the defect was present or he may have negotiated the sale price of the property had he been made aware of this