If you had given them the report and then they put it back on with same MO then I would say yes, deceptive. Did the previous owners live there or was it a foreclosure. If a foreclosure then the sellers are not held to as high a standard for truthfulness I believe. This would also be true of relatives selling the house if they did not recently live there. Perfect houses are far and few between, sounds like that was a good one to pass on. I;m pretty sure it is illegal to sell a house without a working furnace.