And there is not a single real estate transaction that has happened in the last 100 yrs that doesn't have some kind of technical defect.

And then the other one is a condo complex that has some talk of mold and the possibility of construction defects.

They are quick to point out any defects and sometimes you can uncover hidden reason for the seller selling the unit.

Ryan Watson - a special warranty deed is where the seller guarantees the title only against problems or defects that may have come about during the time of their ownership.i.e. - If something went horribly wrong during the years that they owned it, they would be liable - but if something went horribly wrong 10 years before (or after) they owned it, it's not their problem.Does that make sense?

If tenant brings it up however, I would explain that "after discussing the situation with your attorney, since no one was hurt and there was no property damage, replacing the defective appliance is all that's needed to bring the living space back into compliance with the high standards of safety that you strive for in all your units."

I think that the bottom-line question is, "Is the option legally binding on the property, and therefore causing a title defect?"

Lessor has obtained insurance to cover fire damage to the building itself and liability insurance to cover certain personal injuries occurring as a result of property defects or Lessor negligence.

They are not responsible for latent defects, issues that are not obvious or hidden.

I put a property under contract from a wholesaler "as is" and no inspection contingency (but no major defect warranty) and paid $1000 EMD.

In my experience, replacing a sewer line generally requires a permit, so this was probably a violation of the city/county building permit regulations.That said, it would likely be considered a material defect, and you would legally need to disclose it to a future buyer.