What does the term "caveat emptor" mean?

The term "caveat emptor" translates from Latin to "buyer beware." This principle implies that the responsibility is on the buyer to perform due diligence before making a purchase. It emphasizes that buyers should be cautious and aware of the potential risks associated with their transactions. In many markets, especially in real estate and used goods, sellers may not be obligated to disclose certain defects or issues, making it crucial for buyers to investigate and ensure they understand what they are acquiring. This concept highlights the importance of personal responsibility and awareness in financial decisions.