Seller Probably Knew About Open Permits and Oil Tank

[EDWARD M.]

So, I was under contract for just over 2-months and almost $1,400 in expenses paid out for this property. Prior to setting up the contract, seller said he had no knowledge of the existence of an oil tank. According to records, seller purchased in 4/2010 or 5/2010.

During the inspection, inspector found copper pipes the were cut near the front of the house. That brought us to investigating with city hall about possible open/closed permits for oil tank removal or remediation. We found out that there was an oil tank removal permit opened at some point in 2010 (wondering if it's worth trying to find out exact dates) and never closed. There were also 3 other permits that were open during that period.

The lender obviously, now required those permits be closed to close the deal. Seller supposedly found out with the town that it would take 5 to 6 months to close all permits. The seller then offered seller financing, but required a higher down payment so I declined.

I know loss of appraisal, inspection, title search money is expected in some situations. However, I feel that the owner might have lied about not knowing about these open permits and the oil tank situation. In the current interest rate environment and housing market, every week is crucial. I've spent now 11 months looking for a home and this situation does not make me happy at all. Can I get back that money? Should/can I pursue anything more than that money being that the seller probably failed to disclose information he MIGHT have known about and could have avoided me wasting 2 months of time?