This is my first time dealing with these and initially thought they were defective sockets or something. 

Somebody wanting to sue for you backing out of a bad deal or accusing you of selling them a property with defects like unknown termite damage).

Somebody wanting to sue for you backing out of a bad deal or accusing you of selling them a property with defects like unknown termite damage).

Hey Andres - At least in the states I do business in a Sellers Disclosure is only required on resale properties where the seller is expected to have intimate knowledge of known material defects, i.e. has lived or is living in the home. 

Also you can identify new defects vs. existing defects. 

I've been looking for ways to protect my assets for many years and there are some very crazy strategies like the Intentionally Defective Grantor Trust.

Say they have defective siding or the siding has asbestos etc. they will cover over with vinyl instead of dealing with the problem.The key with your wood is to know what kind of shape it is in.

For the hold back, it's usually meant as a protection for you/the lender to ensure the work is done to your/the lender's requirements and that the contractor would return to remedy any defects. 

Please don't skimp here,  One missed defect by the cheap (new) inspector and you just might have your oh crap moment.

So we usually advise and inspection, but when competing, we'll include a provision that allows for x dollars worth of defects.