Can a vendor be liable for a latent defect?

Interestingly, Cardwell v. Perthen described latent defects as being ones which are not discoverable by observation and reasonable inquiry. A vendor who was aware of and fails to disclose, and/or conceals or makes non-innocent misrepresentations with regard to a latent defect, may well become liable to the purchaser for damages suffered as a result of that latent defect. Balance J. said at ¶128: Every imperfection or deficiency which a reasonably careful inspection and inquiry will not reveal cannot amount to a latent defect of the kind capable of displacing the doctrine of caveat emptor. [Which is buyer beware.] In order to qualify as such, the defect must carry with it a consequence of substance; that is, it must be of such a nature as to render the house uninhabitable or dangerous… Beyond that, the vendor has no obligation to disparage his own property.