Home buying contract with incorrect and misrepresentation in the disclosure

[Phil Le]

I’m in a home sale contract in Houston Texas as the buyer.

After the option period was over I found that the home was damaged by water (freezing water - burst pipes) in the winter storm in Feb 2021. I found this information through my home insurance agent only.

In section 3 and 11 of the disclosure, there are the following questions and answers:

- "With in the last 4 years, have you (Seller) received any written inspection reports from persons who regularly provide inspections and who are either licenses as inspectors or otherwise permitted by law to perform inspection? [] Yes [] no. If yes, attach copies and complete the following"

=> Answer from seller:

"Inspection date: April/XX/21; Type: Mold

Name of Inspector: Inspection company (3 reports)

No. of pages: X/X/XX"

But the 3 reports were not attached to the disclosure.

- Are you (Seller) aware of any of the following conditions?

Water damage Not Sue To a Flood Event => No

I have contacted seller for the details and explanation and they acknowledged that they made a mistake when filling the disclosure.

And after that they shared with me the insurance claim, the contractor receipt to fix the issue and also the 03 mold air testing reports after the repair to correct their mistakes.

These documents show many issues with the home like water damage, excess moisture, visual growth and localized problems. If seller included these reports in the seller disclosure, I wouldn't have signed the contract.
The mold report was done 7 months ago with moderate level of spores concentration .

Due to the missing and not correct information in the disclosure, I requested seller to cancel the contract and want them to refund the fees that I paid back (option fee, home inspection, appraisal fees and the earnest money). But unfortunately the seller seems not to agree with my cancelation request.

They replied that my option period to back out was over. I have to reason to back out without losing my paid fees.

I also tried to renegotiate and asked for seller credit to pay for the mold testing and mold remediation if any but no luck. They said issues were fixed and all are in good conditions.

Please help advise me the chance of winning if I go ahead with legal action in this case.

Thanks and regards,