Did not your contract include a provision that the house pass inspection by a licensed home inspector. If you did have such a clause, you can demand your deposit back. If you did not have such a clause, you have only yourself to blame for your predicament.
Yeah, I think he’s just learned a valuable lesson in looking before leaping.
Or even show the report to your lender - if the house doesn’t appraise you won’t get the loan....unless it’s too late for that part.
OR-—He can look long & hard at real estate agent who may have mis-represented the home.