Google the meaning of the latin term caveat emptor and you will get “let the buyer beware.” It is a principle that the buyer alone is responsible to examine, judge, verify and check the condition or suitability of the product.
In the same manner, real estate investment comes with the inherent risk of caveat emptor, therefore it is important to conduct due diligence, inspect personally the property, get professional advise, examine and verify the titles and other evidence of ownership. Determine any unpaid taxes, bills, fees, charges and other expenses prior to actual purchase.
Investors know such risk and they understand the ‘Risk-Return Tradeoff’. The higher the risk, the higher the return but this is another topic for discussion.