In 35 years of practicing in the litigation field including construction defects, insurance coverage, and civil litigation, I've seen some pretty surprising scenarios.

(e.g. if there's a defect that I wasn't aware of then I can safely back out from the deal)

The allowed period to cure title defects should be addressed specifically in the contract.  

That means they claim the property  has defects and instead of getting a judgement court is stalled another month sometimes more during which time a city inspector will do an inspection of the property. 

. - what will you do, if one year after you sold your flip, you are getting sued by the buyer because of some defect or issue, real or imagined, known to you or created by a sub/contractor, or fraud (like, because you made the mistake to advertise your flip for sale with "everything new" and the buyer discovered you didn't change the entire plumbing) and the judge freezes all your bank accounts till things get sorted out?

Mine has a clause that reads: "Tenant shall be charged for repair of drain blockages or stoppages, unless caused by defective plumbing parts or tree roots invading sewer lines."

But it's kind of like asking a barber if you need a haircut.Remember that an inspector's job is *not* to catch any and all defects in a house, or prevent a buyer from purchasing a house with defects. 

A seller is required to disclose known defects to a property by law.

@Quianay Laing The typical language in most sheriff's/trustee's/foreclosure sales warns that you are buying the property "as is", "where is," including title defects and subject to any senior liens.

So a roof leak wouldn't be one, but a clogged drain would be... ie. if the tenant contributed to the defective item, they contribute to the repair.