Final answer:
When a buyer fails to examine public records when purchasing property, they have failed to conduct due diligence, which is essential to assess potential risks and liabilities associated with the property.
Step-by-step explanation:
When a buyer of a piece of property fails to examine public records on the property, they are considered to have failed to conduct due diligence.
Diligence is the act of doing thorough research and investigation before making a decision. In the context of purchasing property, due diligence involves examining public records such as property deeds, liens, and encumbrances to assess the potential risks and liabilities associated with the property.
By not performing this essential step, the buyer might be unaware of any legal obligations, defects, or liens on the property, which could lead to financial losses or legal disputes in the future.