What does the term 'caveat emptor' mean in real estate?

The term 'caveat emptor' translates to "let the buyer beware," which is a fundamental principle in real estate transactions. This phrase indicates that buyers are responsible for conducting due diligence before purchasing a property. It emphasizes that buyers should thoroughly investigate the condition of the property and be aware of any potential defects or issues that might not be disclosed by the seller.

In the context of real estate, this means that the buyer assumes the risk of any problems that may arise after the purchase, reinforcing the importance of inspections and inquiries about the property's history. This principle places the onus on the buyer to be vigilant and informed, encouraging them to seek professional evaluations and to understand their legal rights and responsibilities when making a purchasing decision.