Sometimes the magistrates may ignore this procedural defect.

Is there some defect with this property, like being next to a busy street, that might affect the rent more than you think?

These are not defects, so they won't be found on an engineers inspection.   

There is the offer, approval, inspection, inspection release, survey (this is a big part of what slows things down--NY does warranty deeds and banks require a recent survey, and there are only so many surveyors, so it can take awhile), title search, title defect curatives, clear to close approval from the bank (and this generally has to go through some committee that meets once a week or less), scheduling close. 

As it turned out, the house had numerous defects and I told them we would have to renegotiate or the deal would be dead.

When someone quit claims a property to you, they are giving you title, however it is, defective or not.

The Clerk’s Office makes no warranties or representation about the location or condition regarding any property, the condition of structures or fixtures, its marketability, existing or potential uses, zoning regulations or laws that may affect current or future uses of the property, outstanding or potential liens, mortgages or encumbrances or defects in title that may exist.The Clerk’s Office is not authorized to give legal advice.

When you submit your offer, make sure you have a due diligence period that gives you enough time to do these inspections.Once you get the property under contract, have the septic company do their inspection, have an engineer visit if necessary and get your property inspector out to do a full property inspection -- if he is concerned about a major plumbing issue or mold issue, you can get those specialty trades out to take a look and give you an estimate.If it turns out there is a bunch of extra work in these areas (or ANY areas) that you didn't expect, you go back to the seller and basically say, "Hey, there were hidden defects that I needed to bring in specialty contractors to evaluate, and here are the reports they provided. 

There is usually a clause in the P&S or addendum to the effect that if the seller needs time to remove any defects in title, deliver possession or make the premises conform, you agree to give them an extension and if they are unable to perform by the expiration of the extension, the seller will refund buyer's EM and the contract will be void with no recourse to either party.

Based on the report the property has some minor defects and I would say 2/3 of what we saw we liked and felt comfortable with.