In most states after being made aware of a major defect, you are required to disclose to future buyers. 

What is the defect?

The house went through inspection 4 years ago, which indicated there were no defects and the roof was fine.

Several things are not working with this tenant so end it and give yourself time to get a sub-meter installed for the electrical billing issue (it's not a big deal as long as the electrical is easily accessible), and then rent it at the market rate.Don't let a tenant or a property defect hold you and your business hostage.  

Tell them as a landlord, your responsibility is to remedy defects such as pest issues.

If a 3rd loan with FAM can't be saved, stuck with a simple title defect any investor oriented closer can insure around (missing satisfaction of mortgage on a house that was forclosed. 

He may know of some defect in the title, perhaps something that would come up in the quite title action.

If a covered defect is identified post closing and the seller may be liable for the loss, the insurer has every right to go back against the seller and anyone else who might be liable. 

Title search, back taxes etc all come in here as well.If you've covered any major defects, established rehab or updates needed in terms of cost, run accurate comps, verified tenants/PM's if this applies/they want to stay, verified zoning if it applies, tax rates/title work, local landlord legislation for buy and holds, and the terms of the contract, you should be ready to rock and roll = ) Hope this helps!

Hi everyone, I put an offer in on a house in Cleveland back in May but killed the transaction after finding some defects from the inspection.