Especially in Missouri they are going after charcoal rot and Japanese Beetles on beans. 

The sill plate is rotted in places.

I believe it is your reasonable responsibility to provide an "implied warranty of habitability" from the moment the ink dries on the contract.

It is in need of an exterior paint job and replacement of siding and some wood rot.

I had my cleaner leave like the table and folding chairs there, he basically cleaned out the garbage and food in the fridge so it wouldn’t rot.

2. main bathroom: the toilet wasn't flushing and will most likely need to be replaced. the tiles on the floor and along the wall were also showing signs of coming off and will need to be replaced. 3. flat roofing material has aged and will most likely need to be replaced soon. 4. water heater is working but has met its life expectancy; will need to be replaced soon.5. water supply piping has started rusting in certain areas and will soon need to be replaced6. radiator in the main bathroom on 2nd floor not functioning7. oil/water boiler has met life expectancy and will need to be replaced soon8. chimney shows major deterioration/damage from exterior and needs further inspection9. wood framing in the rear of basement shows evidence of rot. the kitchen is directly above this area of the basement. extent of damage could not be determined due to insulations and will need further inspection10. pavement in the back of the property have cracks that are leading rain water towards the house. we were hoping to renovate this so that the water is diverted away from the house.

Other than that typical old house stuff to look out for: rotted floor joist, non-exsisting footings, crumbling stone foundations, settling, old plumbing, knob and tube wires, poor insulation. 

I've been told that here in Connecticut dry closings aren't allowed and that the transaction has to be funded.

Others more experienced than I may know better but it looks like a rotted out countertop or the flooring of the cabinet 

With a contract it’s cut and dry in court, he broke the rules and now he loses ownership.