Don't sellers have any responsibilities for what they are selling in the US? Certainly in Sweden it is the sellers responsibility to disclose any known problems to the buyer and they're financially responsible for any problems they fail to disclose.
The only homes to have any sort of clawback are new constructions. Which are warrantied for about a year.
Having a brand behind a flipped house could assuage some of those fears.
There is a market for home inspectors to prevent the purchase of a property with issues.
I have yet to hear of anyone having a civil or criminal suit taken against them due to issues with a property (not saying it hasn’t occurred—just that I don’t know of it occurring).