Patent and Latent Defects

Many properties in Calgary have recently been renovated. A shortage of skilled trades has contributed to renovations being completed without proper permits or failing to meet building code standards. Two recent court decisions have dealt with renovations. The analysis of what constitutes a latent or patent defect is very useful.

Calder v. Martin (2007) Alberta Provincial Court 

Mr. Martin, the seller, decided to renovate the unfinished basement in his house to improve its marketability. Mr. Calder, the purchaser, viewed the house when the renovations were substantially complete.
 
Mr. Calder employed a home inspector to prepare a report on the property. The inspector performed a limited electrical inspection and his report indicated a more thorough inspection by a qualified electrician would be necessary for verification. The wiring in the basement renovation violated Building Code regulations. This was not discovered in the home inspection. Mr. Martin argued that the electrical code deficiencies were patent defects discoverable upon inspection.

read more...