The Purchaser agrees that the Seller shall have no liability for any claims or losses the Purchaser or the Purchaser's successors or assigns may incur as a result of construction or other defects which may now or hereafter exist with respect to the Property.

And defects.

Getting an insurance policy that doesn't cover the defective item - like the roof.

When done correctly this can easily equal or exceed the $ value of buying something used and rehabbing it, without any of the time, effort, complexity and $ uncertainty (hidden defects) of that process.It might be useful to think of it like buying fleet vehicles for a transportation business.

> Home Inspector: Developing the skills to be able to identify building defects and better evaluate rehab costs with properties. 

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).

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).

It states "Right now you are a customer"  The goes on to detail the duties an agent owes to a customer - Disclose defects, treat buyers and sellers honestly, account for money and follow all state and federal regulations.It goes on to say "You may become a client" and details the additional duties owed to clients - Perform to agreements with skill and care, promote your best interests, put the client's interests first (fiduciary obligations) and maintain confidentiality.So if your case was here in Maine (your state could be different) and you were a customer, the agent is free to buy that property that you wanted, so long as he didn't deceive and complied with all other laws.However, if you were a client, he would have violated the requirement to put your interests first. 

Also, title insurance covers defects to the title that we're not discovered at closing.

There are a number of ways title can be passed and defects or deficiencies can be cured.