I'm guessing there is an 'option period' in which you can terminate the contract for mimimal to no cost. make sure you send this to the Title Company and request your Earnest Money back as well.
If you have a financing contingency, maybe you can get out if your Lender does not approve your daughter's mortgage due to structural items that have been found.
If none of these work or your very late in the game, you would have a business decision to make and you can not sign the purchase papers and forfeit your earnest money to the Seller and simply not close. Hopefully, you don't get to this point. At some point, it would be better to lose $1,000 of earnest money instead of spending $10,000 in repairs.
This sounds like a money pit.......but the terms of your daughter's agreement will dictate the nature and extent of her options. She should review her documents carefully and consult with an attorney on any issues that are not clear to her.
Unless this is an "AS IS" agreement there should be repair limits and terms that clarify the process. In the event it is an "AS IS" agreement, may still be a limit that would allow her to back out of the contract.
The solution to this dilemma is likely within your documents....be sure they are understood.
One note, if she agreed to buy it as-is with no inspection period, you may have some trouble getting a loan which might also cancel the contract.
Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors