Massachusetts is a "caveat emptor" (buyer beware) state, but an agent still needs to disclose known defects and answer questions honestly. 

My contractor is sending me photos of the work almost daily revealing huge structural defects, damage from rot and termites, and he's telling me the inspector is telling him there are a ton of code violations that are going to add to the cost, for example the HVAC ducting needing to be totally redone. 

Stick with me here, in 2008 the housing market is defective and filled with under performing mortgage backed securities.

The clause is below:  I would interpret this to mean that unless there are any title defects or encumbrances on the property then the title company can not charge the seller any fees and the buyer would be responsible for the title search and all closing fees..

Scenario:For a single-family home rental property, the HVAC inspection identified that the furnace had a defective heat exchanger and needed to be fixed as soon as possible (safety hazards).

These claims were not due to defects in the house itself, but other factors that would have been near impossible to spot.

I don my own search and examination, though I  have over thirty years experience in curing title defects. 

If the buyer is getting a new mtg I can almost guarantee the commitment and policy don't mention the prior mtg because most lenders sell the mtgs they originate and most can't be sold if the Mortgagee's Title policy has an exception for prior liens, even if there is affirmative coverage over the defect.Title insurance companies can be all to willing to issue a policy without exception for a defect assuming the prior title company will take care of the situation if it ripens into a claim. 

., but even newer than 1978 has polybutylene (approx '78-early '90s); defective drywall (early 2000s), then there is always potential for flooding, mold, radon, etc.... so it really is just a matter of your own comfort level. 

Malfunctioning appliances, defective TV, broken washer/dryer are all their problem.