From my understanding there should have been some sort of disclose to a prospective buyer known material defects or conditions affecting the value of the property because even if i want to sell this property today i probably can't any longer as it will impact a reasonable buyer’s decision to purchase a property.

@Terry Smith The older the building the more likely you will find building defects or the more likely you will experience them sooner than later.  

When you go to resell, any good buyer attorney will investigate the foreclosure, and any defects really could cause problems for you.

The issue with structural defects is that it is a general term.

If I'm reading them right, I can win the auction, order my own title insurance, and THEN either cancel the purchase in case of undisclosed defects or get a special/limited warranty deed from the seller.

If I'm reading them right, I can win the auction, order my own title insurance, and THEN either cancel the purchase in case of undisclosed defects or get a special/limited warranty deed from the seller.

Ultimately I didn't close as they would not cure a title defect, but other than needing a fridge and a doorbell repair, the unit was move-in ready.

Well, that is the issue with tax sale properties in general.....if the could not serve proper notice, the sale is defective.

Like Matt M suggests, the supply end could increase if the construction defects law is changed but at this point there is no housing being constructed for sale that is below the media or average home price.

This means that it doesn't always matter if the tenant knew about certain defects.