Thanks for all the response. I just stumbled on this amazing forum today while searching for any cases for similar situations. Another broker told my son that some downtown Denver law firm had written an opinion to one of the realtor associations about a similar situation a couple of years ago and it was available online. I'm still looking and if any of you professionals can help, please let me know.
I could have given better info. At the risk of being too wordy, let me add more background.
My independent, 24 year old, first time buyer, son bought the house in Littleton. I don't have the bank's name readily available, but it was out of Texas and the house had been winterized. After the contract was signed, the buyer agent kept trying to get the utilities turned on for an inspection, but the listing agent kept delaying it, saying there was a problem with the water district. What he neglected to say was that the water district had turned off the water because of a leaky main valve in the basement, which was apparently leaking for some time.
The agent finally told my son's agent that a "plumber" had to "fix a valve" and he was working on getting this done. After a couple of contract extensions because of the delayed inspection, the water was turned on and an inspection was done. The water had dried up when the inspection occurred and it wasn't until a followup inspection shortly before closing that the repair leaked and the listing agent disclosed the history. By then, my son was committed to the purchase.
Obviously, the house was bought as-is. After he moved in he started learning more about the fact that the listing agent knew about the severity of the leak for at least a month while my son's contract was in place, and the agent waited until after closing to send more info in an email. As an aside, the listing agent and bank also failed to supply carbon monoxide detectors, as well as a couple of other items specified in the contract.
My son called me and told me that he has decided to file a small claims suit against the bank and the listing agent to see what can be done to off set some of the remedial work he has learned that he needs to do. I had him send an email to the listing agent asking for a meeting, since I felt that communication was the best first step, but the agent declined, and stated that he did nothing wrong.