Yeah, I think I'd be doing the same. It's one thing if they're painting over discoloured spots from something that leaked in the past, and they've since had fixed, but painting over discoloured spots from something that's *still* leaking is a problem, especially if they haven't put it on the disclosures.

We had an offer accepted on a house, that, during the inspection, we noticed a spot on the ceiling that looked like it might be a leak. The owner insisted that the problem had been fixed, and it was on the disclosure form as having been fixed. Our inspector got up there with the moisture detector (luckily it was raining that day), and found that it hadn't been fixed, and it was leaking. They've since amended their disclosure form, but we pulled out of that deal, regardless -- it was going to be a money pit.