I personally like the idea of condos, but until Colorado gets the construction defect issue solved, the value of condos is too volatile for me. 

Sometimes i'll sell my note because there are things that I know about the asset or the loan that cause me concern like, there is a toxic DDT landfill on the property or, the 4,000 square foot addition to the property wasn't permitted or, there is no certificate of occupancy or, there was a meth lab in the home or, there is a HUGE senior lien in front of me or, there is so much deferred maintenance that I couldn't ever expect to get my money back or, the well is dry and the cost of $20,000 to drill a new well is prohibitive or, there is an incurable defect, or there are huge property taxes or any number of a million other reasons why I'm willing to sell my note and get out of it by passing the nightmare on to another investor.Moral of the story is, unless you are buying in bulk and have the relationships and track record to support it and unless you have the capital and time and stomach to roll with the punches, a single note purchase might be biting off more than you can chew.

It could be argued that broker/agent deliberately committed fraud by hiding latent defects and encouraging buyer to sign a disclosure waiver, thereby, placing buyer in a very vulnerable position.  

Unless it is a defect in the product then that is unfortunately just the cost of doing business.  

If you do in fact have the grounded outlets installed ( you most likely do) by advising anyone to install a surge protector you are admitting in writhing that you have a defective electrical system. 

The appraisal said "near colorless" and the grading was something like"no visible defects".

page=1#p448395Now that thread pertained mainly to FSBO, and it included the minimum mandatory state disclosures; permits are not explicitly mentioned, although one could argue that they are implicit due to the disclosure of "material defects" being required.

And your HOA probably covers any damages that would occur due to building defects, wind, or hail.No guarantee, but you could have a few good years with no maintenance.If you got a nice low interest rate on your conventional mortgage and managed the property yourself you could cashflow $225-278 per month depending on the maintenance.Still, I would want to buy into a townhome like this at a lower price point like $130,000I bought a 5 yr old townhome like this a year ago for $104,000 and it is cash flowing very nicely!

Many may overlook this defect, or consider that the sales price adequately compensates for it. 

Usually there is a puddle that spread and fueled a larger area to be too wet due to defective gutter and downspout issues AND backfill settling over 30-50 years.