If there is any reason to believe there is a defect in the property, however, the seller should make every reasonable effort to investigate. The disclosure statement does not act in place of a home inspection by a qualified individual. Buyers should still hire an inspector. He or she may find something the seller didn't know about. If defects are disclosed, it doesn't necessarily mean the deal will be off.
Buyers can use information disclosed by the seller as a negotiating tool.
For example, you may be able to get the seller to agree to repair the defect before the closing or to get money off of the purchase price or closing costs. For example, if you notice water in the basement, you have a duty to find out why the water is there. If you don't investigate and go ahead with the purchase of the house, you cannot later claim you didn't know there was a problem with leaking in the basement. Even in states that follow caveat emptor, there are certain things a seller must disclose. Some courts have held that a seller who doesn't disclose a hidden defect commits fraud if the buyer could not discover the defect through reasonable diligence.