The problem is that this allows the seller to unload the property with title defects, while saddling the buyer with a title issue which is difficult to remedy, since there is no more incentive on the part of the selling bank to do what is needed to clear title.

This is aside from file defects which prevent enforcement of the note and security instrument or seriously diminish their capacity.

In most cases, an O&E report should flag an major defects on title.  

The risk of hidden defects is everything.

You just never know what is going to happen, is the buyer telling you everything, did you miss some defects (heating, asbestos, roofing issues, title issues, zoning..... etc).The pressure you put on yourself is great, now that you made a decision to make an offer, you now have to perform, you need to know that the decision you made to buy a property comes with lots of details to get it from offer to settlement or assignment and pick up your check.We as investors expose ourselves to lots of personal obligations, making the deal work, confidence in our action, title work, financing, second stage negotiations and personal interaction with everyone associated to making your transaction work.Charles Parrish

I've heard Texas is a Land-Lord friendly state while Maryland may give the upper-hand to Tenants.I think having an LLC for managing personally owned property may not provide as much liability protection, in that defects in the property condition or management are still the responsibility of the owner.

The contract you signed at closing was everything is as-is, and unless the sellers were intentionally covering up defects, there’s not much legal basis you have.

Realize your contractor is not over-charging you and the small defect in workmanship you blew a gasket on was not really a big deal.LOL.

That coupled with a slumlord who attempted to hide some major defects in the property convinced me that it probably was a project not worth undertaking for my first one.

For instances taxes are unpaid or the collateral is defective or ownership is not perfected, etc.