If a reasonably aware real estate professional should have been aware of such hidden defects then step up and take responsibility.

My investment condo has been in litigation against the builder for construction defects for almost 4 years and finally settled last month.  

First, you hired an unreliable contractor who bought defective (used?)

We call out primarily safety defects but also identify issues around maintenance.   

I have actually had park deals fall through (say to a due diligence defect, but the people still referred another park owner to talk with us).  

Maybe they are discounting because of challenges or defects relating to the loan, or they have a strong preference for cash now vs having to wait to collect the payments over time.

So any title defects (liens, judgments, deed issues) will be resolved with the transition.

The GC is the master contractor on the job and therefore all deficiencies and defects flow through them. 

Your duties to disclose are also much more seriously taken, although a seller ALWAYS has the obligation to disclose material defects they are aware of.

The problem with rental inspections is that in theory, the city inspector is not just required to inspect the property for any defects by the landlord, but they are required to report any illegal activity on the property that they encounter.