Chinese Drywall found during inspection

[Theo Gee]

Hello.

We recently went under contract, and had a home inspection that uncovered strong indicators of Chinese Drywall. There are blackened exposed copper wires throught the home. Ground wires on receptacles, copper plumbing pipes. There is even possible evidence of concealing the blackened copper on the AC evap coils. House has a funky smell as well.

We sought advice from various sources (non legal) about possible options we had. 99% feedback was an overwhelming "back out", a direction we were already leaning. We sent the listing agent a termination letter, as well as a denial letter from the lender. We were well within our inspection period, however the sellers agent has been ignoring our agent's attempts to reach out for days. Our inspection period ends tomorrow with no response at all. My questions: how do we ensure that we receive our deposit back? How could the sellers not know that the home was contaminated? 

look forward to hearing your thoughts. Thank you