What does the term 'caveat emptor' mean?

The term 'caveat emptor' is a Latin phrase that translates to "let the buyer beware." This principle places the responsibility on the buyer to perform due diligence and to be aware of the potential risks associated with a purchase, particularly in transactions involving goods or real estate. It emphasizes that buyers should be mindful of the conditions and qualities of the product or service they are acquiring, as sellers are not necessarily required to disclose all information about their offerings beyond the essential facts.

This concept is particularly relevant in real estate transactions, where buyers are encouraged to inspect properties thoroughly and ask pertinent questions. It highlights the importance of awareness and caution in any purchasing decision, reminding buyers that they should not assume everything will be satisfactory without verification. This understanding is essential for anyone engaged in buying and selling activities.