You did not "blow the deal", you reported the facts and made recommendations based on what you found. You did not say "don't buy this house" did you? Sounds like you identified a problem and called it out.
Who did she sue?
How did you find out?
Sounds like there is a lot of hot air in addition to the odor.

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Jim Luttrall
Mr. Inspector.net, Inc.
Allen, Texas 75002