In my market sellers are supposed to disclose all latent defects on a property that are significant to the habitability and structural foundation of the property.

IMHO (based on MANY PRIOR TRANSACTIONS), you can and SHOULD bid without TOO MUCH concern, as most Contracts have a 5 day escape clause for diligence and inspection related defects, EVEN IF the contract states that is for the sale of the property in it's AS IS condition. 

I can see some defect and one come off, but 3 at one time?

@Mike Nelson first off i am an agent in Green bay and have good relationships with a lot of the agents in the area so if you have more conversational type questions and want to chat let me know and I will help best I can.With regard to all of this stuff, I always tell my clients we are looking for "defects"  or "safety hazards in the property. 

A QCD is actually no worse than a Special Warranty deed, as a SWD simply says the seller will defend against claims due to issues Only while they owned it.Get a Full search by a Local title company, which can look for “unrecorded” liens....utilities, code violations, etc.The seller contract addendum May allow you to cancel if title defects are found.

Let's say that meanwhile, she makes some claim of defect in the unit to stave off rent increase or eviction. 

You can always reduce the price after locating the defects.

After six months, they've had time to find the flaws or defects and will be able to tell you if this contractor really does quality work or not.

The scumbag was trying to enhance his chances of earning a commission by exposing me to potential title defects.

My state only requires home sellers to disclose for lead paint and any known material defects.