Seller didn’t disclose property has two mortgages

[Mister Jenkins]

Long story short….nyc house was already under contract when the seller decided to disclose that her property has two mortgages. Her father passed away and left her the house. My real estate lawyer is saying the contract is simply over & I get my down payment back. I was wondering, is this legal? Shouldn’t the seller disclose this information up front? I lost a whole month of looking at houses because I was certain I had my first property….this one truly bummed me out. 🙁 sorry it wasn’t a short story