Also known as a “latent defect”, a property defect is a fault somewhere in a property that was not noticed or discovered prior to its sale. The prior owner of the property may or may not have been aware of the defect. Defects are often not discovered by a traditional home or building inspection. Property defects are often associated with construction defects (improper installation, construction methods or defective building material). A common defect is when improper drainage or waterproofing allows for water damage and mold growth within a property.