The buyer could have done a number of actions for discovery to mitigate the problem ahead of time.

Solve it or the damages just get worse because the leak will spread horizontally along any header or sill, and making the discovery of the cause just that much harder.

Now that Discovery is moving its headquarters up to NYC and taking a huge number of employees with it/laying them off, you might get lucky and find a good deal.PG has a long ways to go, so does DC.

You still have your Due Diligence period in an As-Is deal, and as long as you make any price reduction requests within that time frame, then you are within your rights to (1) decide to move forward optimistically with the deal, (2) take a hike and get all your Earnest Money back, or (3) tell the hopeful sellers that you will walk if they don't drop the price into the realm of reality given the distressing discoveries of the inspection.    

The beneficial interest to those trusts is conveyed via assignment to an LLC that I co-own with somebody else so the LLC is not single member LLC but partnership that does not exist only in my drawer but has separate bank account and an operating agreement. even if they get the judgment against me that exceeds my insurance limits and they get charging order against the LLC that holds the beneficial interests for all the trusts (you are talking serious $$$ in attorney fees and years in court)…the order is only good for distributions …what if I never distribute anything and collect rent in cash or even better ..assign that beneficial interest to my other family member long before plaintiff will petition for discovery of assets or even subpoena my tax returns ?

An architect/designer friend, back in the day when the Discovery Channel (Silver Spring, MD) was making all sorts of make over shows, was working on a pilot and the show's producers kept trying to push the drama.

Lookup the term "discovery" if you're wondering how the judge/tenant/lawyers will find out about it.

so i retract my statement.the only time i engage in conversations such as these is for the sake of those listening. but then it is no longer a debate i engage in, but a re-discovery process of opposing views.as a post script: i came across this thread because it sat at the top of my dashboard, so i didn't dig to find it, and was drawn to so many replies in the thread.

You are absolutely presumed guilty until proven innocent and don't even think about getting discovery.  

At least get in the ballpark and using the Commercial Offer to Purchase contract, use the Approval of Inspection contingency to allow renegotiation of the price upon actual discovery of issues.