In Escrow...Red Flags Present, advice needed!

[Gabriel Rocha]

I am one day into escrow on a recently flipped town house and some major red flags have appeared: 1. An adjacent unit (shared common wall) had a major fire a few months back and is uninhabitable per the city. I learned today that the cause of the fire was faulty electrical wiring. Should the seller have to provide assurance that no shared electrical exists and all electrical in the flip has been updated to code? 2. Through further research I was able to speak with a current resident of the neighborhood who stated the unit in escrow was damaged by a flood from an adjacent unit. When I approached the sellers about this, they stated nothing was provided to them in the disclosures from original owner. Should the seller be responsible again for providing assurances that no mold or other issues exist due to this? I know a general home inspection will not be able to detect such issues that could be behind the walls. At this point I am ready to pull out of the deal but unsure if next best steps.