I've already corrected some defects of the house and I want to know where should I draw the line on fixing this or correcting that?  

Tom Rockwell you also have to keep in mind that many of these properties being sold have title defects, and you must get a title search before bidding.

RESDL has a "catch-all" provision that requires you to disclose any "material defect."

The seller failed to disclose several known defects in the residential disclosure form. 

A 4 year abandoned conneticut farmhouse with squirrels and giant fall through the ceiling panels raccoons.Any tips for getting a thorough assessment and opinion  -  such as feces in betwen studs  and wiring defects?

I feel the clause is necessary protection for me and my family in the unlikely case after spending Sellers $3k and what ever costs we'd put towards repairs, the home was still found to have major defects that could not be found during walkthrough and or inspection.Why would a seller bully out a clause that basically says, "if the property is uninhabitable you can walk away."

@Jason Johnston  The tax sale is void because it was constitutionally defective.

This mandates that all the defects on your title will be fixed, including the back taxes.  

No, it covers defective materials (very limited since manufacturer will cover their own product) or defective workmanship (i.e. employee installs cabinet with wrong screw, cabinet falls and breaks countertop, CGL covers both cabinet, countertop and new installation).

As for LP/SP%, most of my sales, and buys have been close to LP unless the agent has grossly over priced the listing, or there is a major defect that is found.