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.

"Recently updated" - We used new carpet and paint to hide structural defects."

Another change is the construction defects law.

The reasons it is done that way are numerous, but some are "to clear title" and to meet statutory obligations set by the state.I'd want to know if there is a material "defect" in the property that caused it to not close when it was "pending".

So if there was a defect in the product, they would not only pay for the product replacement itself but also the labor to fix it!

@Andrea Tapp, sellers are required to disclose known defects in all 50 states.

If the title to all or any part of the Property is unmarketable, or is subject to liens, encumbrances, easements, conditions, restrictions or encroachments other than those excepted in the preceding sentence, Seller will be responsible for remedying or removing the title defect or at its election may choose not to cure the title defect in which case the Buyer may waive the title defect and proceed to Closing or may terminate this Agreement in which case any Earnest Money deposit and/or any other funds held in escrow by the Closing Agent shall be refunded to the Buyer.4.

I will take care of all damages caused BY tenant, but ask building defects be handled by said owner/landlord."

@Jacob Ham I always use hard money loans when using the BRRR strategy, and that's mostly because the properties cannot get financing because they need to much work or a major system has a defect.

That could be a defect in the action if the mortgagee or FC attorney is unaware of the structure and/or agreement.