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 'off market' deals were on market deals that fell through for reasons of no money due to appraisals, or defects, or both.

All defective (cracking, scaling, chipping, peeling, loose, orflaking paint and paint that is to be disturbed by this Painting (Exterior) point or other points in the Work Write-Up must be scraped, primed and double coated.

Free from liens, encumbrances, and defects

Aftercorrective action is taken on an existing defect, you will continue to receive warranty coverage for theremaining period of your original warranty.x One replacement floor only will be made for the wear out, fading and staining.

Having lived in the house yourself and being your own listing agent you leave yourself open to some liability should they find a defect in the house after closing, even if you didn't know the defect was there. 

My plan is Buy&hold, so it basically sounds like a good deal to have tenants already.From the other hand, maybe the seller can hide defects more easily?

I've also defected from my firm's view on REITs...currently (and for a while) we have had no representation in that asset class in our core portfolios.

However, we finished the project except for the punchout (with lots of construction defects), and we received our certificate of occupancy from the city.   

I dunno...that might be a product defect.