I’m assuming you did the inspection during the time you have to walk if it doesn’t come back clean, most do. In this case, even if the seller would fix it, I would still walk. But, if you have to have this particular house, then the seller should pay for an inspection that includes the slab, and under the slab, maybe there is a broken water pipe under the slab which is costly to fix.
If it was me I’d run away, but if you only put a few thousand down and you agreed to a contract that doesn’t get you out, then walk away and lose your down payment. No need to talk to a lawyer, you have the contract. Also, the seller has to disclose any issues, so if they lied, you have them by the short hairs and you can get out.

$10,000 in earnest money that is held in an escrow account.

$10k is a lot of money, but if you have a broken pipe underneath the house, $10k is the lesser of the expense and I would walk.

Have you at least seen pictures of the area where it got in? There's really nothing anybody on a forum can tell you.

If those of you reading this thread would read the other thread by OP "Real Estate Question," many of your questions to the OP would be answered. However, since it is so long, I'll summarize some of what OP posted:

But first, please read a brief history of the transaction and the concern with water damage found at inspection. Post #1
In response to many questions to the OP about what the inspection clause says, especially if she is still within that time window, she is unable to decipher the contract language re inspections. Post #'s 25, 27
Agent has told OP that she can't get refund of $10,000 "deposit.". Post #'s 32-34, 40
Woman owner passed away at age 97, so probably didn't know about the water damage. Post #62. So, the seller is likely an estate.
OP's $10,000 is in escrow. Post #74
OP hasn't signed the addendum to extend the closing date. The seller has until Friday to repair water damage. (Windows also need replacing). In answer to the question of which type of agent is involved, there is a Realty Executive agent mentioned, so it likely is MLS. Post #93.

I would be very concerned about the possibility of black mold. Should be checked out as well as to find out where the water is really coming from. You might have a leak in your home?

If it’s stucco, it could be a crack in the stucco where water gets in.
It happened to my neighbor. He sealed the crack and it solved the problem.

IMHO, get an attorney and keep moving to a new listing. Long term leak would make me concerned about the slim possibility of a sink hole.

I agree that I would not buy the house. I hope the contract is in your favor. It's a buyers market here and now so plenty of houses and villas to choose from.

did you not already post this question in another thread??

No way I would close until I found out what the real problem is. It could be simple or it could be really messy like a cracked water line under the the house foundation.

If you really can not get your $10,000 back, I hope you got a HUGE discount on the house, because it seems like you purchased “as is”.

Yes. Just asking villa owners of their experience

Yes it's stucco