If the seller made an offer contingent on inspection, everything else you say is moot. They said they would buy it if it passed their inspection, it "failed" their inspection so the deal is off. Whether or not the inspector was qualified to inspect the house, or whether or not they followed proper procedure is irrelevant. The offer and your acceptance formed a contract; unless that contract specified otherwise they get to kill the deal if they didn't like the inspection results.
BTW, I've never heard of anyone paying for an inspection before making an offer.
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Today's Featured Article - Women and Tractors - More Views From the Farmer's Wife - by Teri Burkholder. The top ten reasons why the judges wouldn't let you participate in the stock antique tractor pull: Hey, this is stock! It came with that V8 in it! That "R" on my tires stands for "really old" not radial! Blue gas? We thought it was a pretty color! What wire hooked to my throttle?
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