What Does Caveat Emptor Mean In Real Estate?

Mar 11, 2024

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Buying or selling a home can be confusing enough on its own, before introducing an unfamiliar phrase. One phrase you may run into is “caveat emptor.” Here we’ll break down what caveat emptor means in real estate transactions and the risks that can accompany those home sales.

What Is Caveat Emptor?

Caveat emptor is a Latin phrase that translates to “let the buyer beware.” In real estate, it’s similar to the idea of buying a house that’s sold as is. Caveat emptor means the buyer gets what they get, even if it has major flaws. If unknown problems turn up after the sale, the seller is not responsible for them, leaving the buyer on the hook.

It takes the liability off the seller, letting the buyer know they’re purchasing the property at their own discretion.

Caveat Emptor Vs. Caveat Venditor

The opposite of caveat emptor is caveat venditor, or “let the seller beware.” In some cases, caveat venditor has become more prevalent than caveat emptor. The trend in court in some states is focusing on buyer protection, so the seller may need to take extra steps to protect themselves.

If you’re the seller, protecting yourself starts with disclosing everything you’ve done with the property or any property concerns. This includes repairs done, property defects or potential property disputes. It’s better to over-disclose, as you would rather reveal too much than get in legal trouble down the line.

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