Failure to Disclose Water Intrusion

[Austin Johnston]

Fello investors, looking for some insight/guidance. In September 2024, I purchased an investment property and the tenants immediately began reporting water leakage through the basement walls (seepage). Nowhere in the property disclosure, nor the inspection did it note water intrusion issues. 

To diagnose the issue, I had two companies come out to advise the remedy. Both companies noted the issue was not acute and had been occuring for years. 
 

The LLC i purchased it from acquired the home in June 2024 and had flipped it. The LLC purchased the home from an individual who had owned the property since 2014. I feel it's possible the LLC was unaware of the water intrusion, but the previous owner of 10 years (who lived in the home) most certainly was aware of it.

Question: If the 2014-2024 owner failed to disclose the water intrusion can they still be liable as they didnt disclose it when they sold the property to the LLC? Which ultimately created a chain of events, leading me to not be notified?

Appreciate the responses.