If you fail to follow the rules, you may open your personal assets to a lawsuit.

Another great tool is to incorporate a quality home warranty (paid for either or both parties) to alleviate some concerns about items that are functioning but not failed. 

If the other options fail, that allows you to keep the 3% and only pay the higher rate on the repair in the meantime.

Sellers go out thinking they have a deal and contract for their new living arrangements only to have their deal fail and now it puts them in a pickle.

Most try and fail.

To make a long, expensive story short, we discovered that builder failed to insulate an entire 3rd attic space and didn't seal wall cavities up in the main attic or insulate chases properly (Inspector failed too). 

Failing to claim expenses can lead to mortgage fraud or even major tax issues if you get certain refundable credits.Not worth my time to comment further.

Pictures and listing text won't show you a failing roof, soil pipe, wet basement that is currently dry, etc.

Sometimes a tenant will try to withhold rent or use as a defense in a lawsuit based upon something the landlord did or failed to do.

The town has to fail the tank when there are any holes that could have had leakage and when they remove and scrape the tank sometimes they make pinholes when doing it.