From the [dictionary][1]:

latent defect n. a hidden flaw, weakness or imperfection in an article which a seller knows about, but the buyer cannot discover by reasonable inspection.

Think this term is more used for selling physical items (like houses and cars) and not in software.

In software it might be a defect the developers know about, but do not tell the testers or the end-client. [1]: http://legal-dictionary.thefreedictionary.com/latent+defect

From the dictionary:

latent defect n. a hidden flaw, weakness or imperfection in an article which a seller knows about, but the buyer cannot discover by reasonable inspection.

Think this term is more used for selling physical items (like houses and cars) and not in software.

From some random site:

latent bug: The bug that is not identified in the past versions of the software application

In software it might also be a defect the developers know about, but do not tell the testers or the end-client.