What is Caveat Emptor?
Caveat Emptor is A Latin term meaning let the buyer beware. Caveat emptor does not apply to contracts of insurance. It is a maxim that applies to real estate and most real property transactions where the onus is on the purchaser to be satisfied as to the suitability and condition of the property or goods being considered for purchase. The vendor is not responsible to the purchaser for the condition of the property and, unless specifically asked, he does not generally have an obligation to reveal problems to the purchaser (except where the defect is hidden, serious and could not be discovered by the purchaser after reasonably prudent inquiries and investigations).