What is the test for latent defects in real property?

In Swayze v. Robertson, [2001] O.J. No. 968, LaForme J. discussed the law with respect to misrepresentation, latent defects and the purchase of real property. At paras. 25 – 27, he stated: Generally, it is accepted law that in a purchase and sale of real property, the notion of caveat emptor applies in respect of the physical amenities and condition of the property. And absent fraud, mistake or misrepresentation, a purchaser takes existing property as he or she finds it unless the purchaser protects himself or herself by contract terms. … A ‘latent’ defect as it relates to the case at bar is in effect some fault in the structure that is not readily apparent to an ordinary purchaser during a routine inspection. And ordinarily, if a vendor actively conceals a latent defect, the rule of caveat emptor no longer applies and the purchaser is entitled, at their option, to ask for a recission of the contract or compensation for damages.