What does "caveat emptor" mean in real estate transactions?

The phrase "caveat emptor" translates to "let the buyer beware." This principle places the responsibility on the buyer to conduct due diligence and thoroughly investigate a property before making a purchase. In real estate transactions, this means that buyers should be cautious and aware of potential issues with the property, as it is generally not the seller's responsibility to disclose everything about the property's condition.

In practice, this concept encourages buyers to take proactive steps, such as obtaining inspections, reviewing property disclosures, and researching the market, to ensure they are fully informed about what they are purchasing. Understanding this principle is crucial for both buyers and real estate professionals, as it underlines the importance of transparency and responsibility in the buying process.