Toxic mold. Clearly visible to the naked eye if you knew what you were looking for. The seller had two previous potential buyers back out of the contract after the inspection. We were definitely spooked by that, but we assumed that it was because the retaining wall in the front of the house is going to be an arm and a leg to scrape and rebuild by the time we're done with it. Looking back on that now - the crumbling wall was obvious to anyone who made an offer, but the mold should have turned up on inspection.
I feel like kind of an ass that I didn't spot it myself when we were looking at the place. But I can't spot every potential problem during a 20 minute walk through with our agent. That's what home inspectors and legal obligations for disclosure are supposed to be for.
The inspector was recommended by our agent, our agent worked for the same company as the seller's agent. Everyone's incentive is to push the deal through, mold or no, because that's how they get their pay day. I'm not crying some sort of criminal conspiracy here, but in hindsight it feels like there was likely some sort of ethical breach on the part of at least one of those parties. Whether or not it is an ethical breach that we can make stand up for a few bucks towards our repair bill is something I am somewhat doubtful of. But I figure it's at least worth asking the opinion of someone who deals with these matters professionally.
As for going back to the attorney from closing - he came recommended from our agent, who worked for the same company (different office) as the seller's agent, etc. etc. I would prefer to get the opinion of someone whose bread isn't getting buttered by any of the other parties involved in the sale.
The situation sucks and I'm not normally a fan of lawyers (though pics of your sister can persuade me). But this might be one of those instances where a lawyer is the right tool for the job.

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