We refer to it as a defect.

If you know about a defect, you have to disclose it, if the buyer thinks you covered something up, they're going to sue (or threaten to sue) to shake you down for money anyway..

If they choose not to exercise that right then they won't win damages later on for what they could have found but chose not to investigate.Now had they completed an inspection but the defect was not discoverable in such an inspection then they might win the argument.

Not an attorney.Georgia law requires you to disclose any known material defects in the home.

@Lou R.There are many possible reasons:NOI numbers in the pro forma are likely rosy ... a thorough analysis could tell a quite different story;There may be other liens or defects in title on the property;The building is facing functional obsolescence or is carrying too much deferred maintenance;There is a forthcoming change in the local economy (major employer downsizing/leaving) or neighbourhood (redevelopment, highway or manufacturing being built close-by);The list goes on, but it always comes down to a lack of value in the proposition: either there is a significant problem with the business or the asset which makes the acquisition costs unreasonable.Now, sometimes this can be a good thing - if you are certain you have identified the issue(s) and know you can effective remedy them at a cost which the business could afford, you may have yourself a deal.  

Only 1 year year re: defective noticing.

If you purchase the property you purchase the defect.

For example, and not by way of limitation, Brokers and salespersons have no special training, knowledge or experience with regard to discovering and/or evaluating physical defects, including structural defects, roof, basement, mechanical equipment, such as heating, air conditioning and electrical systems, sewage, plumbing, exterior drainage, termite, and other types of insect infestation or damage caused by such infestation.

Possession won't resolve a defect in title or any claim adverse to your position as buyer, of course.QCD is best thought of to use to release an interest that is or may be present.

@David Krulac is correct that in 99 percent of cases, defective notice to an interest holder means that the sale does not divest that interest.