If this is your situation as the buyer, you're going to have to take the contract and the inspector's report to an attorney in your area, for reliable advice.Your best approach when buying a house, whether it's new construction you're buying from a developer, an "as-is" foreclosed property or anything in between, is to hire a lawyer before you go to contract.  Most real estate lawyers will agree to take their fee as a closing cost, and by having the lawyer on board from the start, you can prevent problems like this, rather than having to have the attorney start in damage control mode.