condition report untrue

[Chris Matheson]

I am days away from closing on a duplex and completed the final inspection. It rained the day before and I noticed the basement floor was wet along with the lower portion of the walls. The condition report stated the owner did not know of any defects in the basement or foundation but the tenant mentioned they did not use the basement because the current owner told them the basement gets wet when it rains. I am not sure if I am required to inform the bank of a falsification of the condition report but I am pretty angry at the seller as I have a certain amount allotted for repairs and waterproofing the basement was not in the budget. If I had known of the seepage issue I would have negotiated a lower price or an amount escrowed to repair this problem. Has anyone had an issue like this before?