The home inspector may be willing to work with you on fixing the issue, it would seem he was the negligent party.

Private nuisances may be broughtunder any of the three tort theories (strict liability, intentional tort, negligence) that westudied.

Certain lawsuits that might ordinarily clean you out with damages for negligence or whatever, the LLC can take the hit keeping your personal finances safe, and then that hit can be a business expense and tax deducted.You could do everything you do business-wise as a sole proprietorship with a lot less hassle, but then you pay for that convenience later if you get into a lawsuit.Forming an LLC is a filing of paperwork. 

They face willful negligence lawsuits.So I doubt anyone is going to simply walk away from this.But I agree it could be an opportunity for a new investor.Except reputation is in tatters,and any new management will need to first surmount that marketing disaster.

I feel he was negligent in sharing this information with us, as we would have approached this completely different, especially hearing this from 2 engineers.

However, insurance is limited because it only protects you from one type of liability: accidents/negligence.

I recorded a video of our entry that shows all of this in evidence.The question now is: is this considered Destruction of Property either Willful or through Gross Negligence?

I would certainly not suggest locking into a contract on a property for that long unless the good faith deposit is negligible (like $500 or $250).

If you are not negligent, you're not at fault. 

I plan to own the property about 4 months... what it will take to repair it and sell it.My very experience REO realtor is telling me that the title is obviously clear since they did the search and I can get away without buying title insurance if I don't want to.Her very experienced title company owning husband advised me to get the title insurance because there is a very large discount on the policy when i sell the house if the time between this sale and the next is short.Does anyone out there every buy houses without title insurance when the risk has been characterized and determined to be negligable?