Somebody wanting to sue for you backing out of a bad deal or accusing you of selling them a property with defects like unknown termite damage).

Somebody wanting to sue for you backing out of a bad deal or accusing you of selling them a property with defects like unknown termite damage).

Could have been a super-defective door, who knows. 

Somebody wanting to sue for you backing out of a bad deal or accusing you of selling them a property with defects like unknown termite damage).

Often your down payment funds don't need to be seasoned, most banks want several months seasoning.Hard money often lends you money to fix up a property and can lend on distressed properties. most banks don't lend rehab money and property cannot have any major defects. 

The condition report stated the owner did not know of any defects in the basement or foundation but the tenant mentioned they did not use the basement because the current owner told them the basement gets wet when it rains.

Material defects with the property should be disclosed right away.

It's not advisable, but YES, people sometimes buy with known title defects.    

Often these are also sold "as is" where you are buying any faults or defects as well.

You may not find that out until later.If I were a pilot, I'd be looking to be the best pilot possible, but if I'm put on a defective plane and find that out in the air, I'm going to want to have a trustworthy parachute