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recourse for misrepresentation

My inlaws recently purchased a home with a basement apartment and went through the inspection which didn't raise any issues. Upon doing renovation prior to moving in, they discovered a major mold issue which is now costing huge amounts of money to clear up. Additionally, upon inspection of the reno - they now have found out that the basement unit in this house is not actually legal. Clearly I don't know all of the details - but is there any recourse for any of these issues? Sadly, we don't live near by and have not been able to be a part of this process - perhaps if we had, we could have helped them avoid some of this!

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