Increasingly property buyers are aware of their responsibility to discover building defects before sale – this is known as the Latin principle Caveat Emptor or ‘buyer beware’.
The full quotation is ‘caveat emptor, qui ignorare no debuit quod jus alienum emit’ – ‘let a purchaser, who ought not to be ignorant of the amount and nature of the interest which he is about to buy, exercise proper caution.’
Under this common law, the purchaser must make their own investigations of a property as there is no legal obligation for the current owner to disclose anything relating to the quality of the property or the land it is built on.
As a result home or property buyers that subsequently attempt to seek compensation for defects discovered after purchase will find themselves at a significant legal disadvantage. There is little recourse to compensation for purchasing a property with defects.
The worst case scenario is that you find yourself with a property (and a related mortgage) that is worth significantly less than you bought it for.
A building inspection is consequently, a prudent risk reduction strategy in what is likely to be one of the most significant purchases of a lifetime.
Conlcusion
Caveat Emptor—“let the buyer beware”—reminds buyers that in property transactions, responsibility lies heavily on them to investigate thoroughly before committing. While sellers must disclose known defects, buyers cannot rely solely on seller transparency. Conducting detailed building inspections and due diligence is essential to avoid unexpected costs and risks. Embracing this principle empowers buyers to make informed, confident decisions, protecting their investment and ensuring peace of mind in the complex property market.
FAQs
It means “let the buyer beware,” emphasising buyer responsibility in transactions.
Buyers should arrange thorough inspections to identify issues before buying.
It helps buyers avoid costly repairs by identifying problems early.
They provide expert assessments to uncover hidden defects.