Discovered rotted rim joists in my house : HomeImprovement

Bought a house about six months ago, first time home owner. Thought I would insulate my rim joists to save some energy. After pulling out the fiberglass batts, I noticed some reslly bad rot. It seems to be dry now, but I can literally pull chunks of wood off with my fingers.

It appears that the deck was attached improperly (no flashing) and all the rim joists by the deck seem to rotted.

It seems that one of the previous owners was aware of this, and replaced part of the floor with chip board as you can see in the pictures. The house was built in 1983, and the builders lived there until 2017. The secind owners only lived there a couple years and now we are the third owners.

Anyways, none of this was ever disclosed to us. Its hard to pin point which owner did the work… not sure if I should be posting in r/legaladvice or what… kind in over my head here. Not sure what to do

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