[grayesun]

I've not contacted the prior owners, the gentleman is terminally ill; so I'd like to avoid this if possible. The home inspector (not pest inspector from Dean's) did find a receipt (in the attic) from the last pest inspection done in August 2000. Knowing the last inspection had been done over 9 nine years ago, we were relying heavily on the pre-closing inspection to verify the home had no termite/pest problems.
The $150 real inspection quoted by Dean's on 1/4/10 was based on the fact we had a record of an inspection from 8/2000.

We'll move forward to determine extent of infestation/damage and act accordingly based on findings; hopefully avoiding legal conflicts.

Finally, a note to potential buyers & friends of buyers of pre-owned homes - don't settle for the cursory bank required ($55) pest inspection; pay the extra $$$ and get a real binding inspection before you buy.