I have bought properties with defective title, when I understand the defect and the risk that it will come back to haunt me.

@Rika Dodda An inspector is not going to be a great help, unless there are obvious major defects.  

In the US, you must disclose any know defects when you sell and can be sued if you hide defects. 

I think that if it is not disclosed, not only is the landlord liable for any damages from the defective conditions, but anyone who is aware of it and did not properly disclose the defective condition to the tenants could be as well. 

The seller is under no obligation to disclose defects.  

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).

In showing me the shoddy workmanship he began to peel paint from a door as he pointed out the defects throughout the home.

If the deal is that good, would a defect (even a $3k one) make you walk?

All I can think of is disasters or defects with the property that I'd seek insurance against.

none the banks do not care about the proforma of the property only what they are owed and the appraised value They might discount for a material defect like mold or other issues