What product do you use that keeps you worry free?

They will either go back if it was a problem with their title transfer, or they will pay for your losses, legal defense fees, or the cost to fix the defect. 

in my opinion, it depends on the defect.

As a real estate investor/owner you should be mindful of landlord/tenant disputes, premises liability/personal injury conflicts, payment/performance related disputes, mechanics liens, title related defects & property condition defects and related disclosures.

I don't think anything has changed. 1) Ensure the borrower has the ability and exit strategy to pay the loan back, 2) Ensure the borrower has a history of paying their bills (we pull credit), and 3) We pay attention to not only the LTV and not overleverage, but we make sure there aren't any significant defects in the collateral (environmental issues, settlement issues, title issues, etc).

If the doors are very beat up you can do quite a lot filling defects and then painting them.

COULD an excessive amount be considered "damage", sure but once you or someone you are paying has spackle in their hand how much cost is it per defect to repair?

Defects in the sewer lateral usualy start catching solids and limit the amount of water that will drain.

I remember back in 1994 in coastal California, there were construction defect issues everywhere and condo prices plummeted.

And what happens if there’s an operational mistake or a construction defect that isn’t easily recoverable?