61. Duty to disclose defects in title.

As an exception to the caveat emptor principle1, the seller is under a duty to disclose to the buyer latent incumbrances and defects in his title regardless of whether the buyer raises enquiries about such matters2.

A defect is latent if it is not apparent, but the distinction between latent and patent defects is, in practice, unclear3. A seller should err on the side of caution and make a full disclosure of defects and incumbrances. Although a defect is not latent if the buyer has constructive notice of it4, the effect5 is to place a duty on the seller to