What does the term "caveat emptor" mean?

The term "caveat emptor" translates from Latin to "let the buyer beware." This legal principle emphasizes that the buyer assumes the risk regarding the quality and condition of a product or property at the time of purchase. In real estate, this means that it is primarily the buyer's responsibility to conduct due diligence before finalizing a transaction. Buyers are encouraged to inspect properties thoroughly and seek any needed information or reports before making a decision to buy.

This principle is particularly significant in real estate transactions because, unless otherwise stated, sellers are not typically required to disclose all details or defects about the property. It shifts the burden onto the buyer to understand what they are purchasing and to investigate any potential issues that could affect the property's value or desirability. Thus, "let the buyer beware" serves as a reminder for buyers to take the necessary precautions when entering into a sale.