It's really tough to build a $400,000 house when you start out that far behind.The construction defects law is really holding a lid on opportunities for entry level buyers.

Now they don't need to because they are working with the end buyer, but you do if you want to make a profit.There will be Latent Defects:  It's always smart to budget for contingencies, and make sure that your project will be profitable even if you hit some snags.  

Some double-pole (240Volt) FPE circuit breakers and single-pole FPE Stab-Lok® circuit breakers simply do not work safely.There are other FPE panel-defects independent of the breaker problems, panel and panel-bus fires and arcing failures in some equipment.

In most states you only have to disclose a violent death like a murder or suicide or death resulting from a defect in the property.

IE mainly all SFR or small commercial buildings.GOOD insurance will be what U need.Although the slumlord  stuff were you have deaths because of maintenance defects  those are real and can turn criminal.

Secondly, most states have a construction defect period of more than 1 year that should protect you from some sort of major problem (do your due diligence) AND you can purchase a home warranty for the major appliances and furnace, etc. for a few hundred bucks.

Last week, I had it professionally inspected and found out there are major defects with the roof, electrical and HVAC.

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).

And somehow he expects me to "have the integrity" to come troubleshoot for free because his "electrician found a defect in your installation."   

If there are clouds or lines on the title, they should alert you to the defects.