Practice and liability
Caveat emptor
"Let the buyer beware" — the older rule that buyers inspect at their own risk
Once the default position in property sales, now substantially displaced in residential transactions by statutory seller disclosure requirements in most states. It has not disappeared: buyers still inspect, and an as-is sale still shifts real risk.
How the exam asks about it
The nuance the exam wants is that disclosure statutes did not create a warranty. A seller reports known defects; a seller does not promise the property is sound.
Related terms
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