Oregon Real Estate Practice Test 2025 - Free Real Estate Practice Questions and Study Guide

The “Caveat Emptor” principle translates to “let the buyer beware” and is a fundamental concept in real estate transactions. This principle places the responsibility on the buyer to thoroughly inspect and evaluate the property before making a purchase. It emphasizes the importance of due diligence, meaning that buyers should take proactive steps to ensure that they are aware of any defects or issues with the property.

In real estate, this principle often means that sellers are not legally obligated to disclose all defects or issues with the property unless there is misrepresentation or fraud. Thus, buyers cannot solely rely on the seller’s statements or the appearance of the property; they must investigate and verify conditions themselves, whether through visual inspections or hiring professionals for assessments.

Understanding "Caveat Emptor" is crucial for buyers because it highlights the risks involved in purchasing real estate and reinforces the necessity of conducting thorough research and inspections to protect their investment.