New violation during escrow; Seller's default CT lives nextdoor?!

[Jonn Vidal]

Discovered new, open violation during escrow; seller's defaulted holdover Commercial Tenant lives nextdoor

While in escrow with contingency to deliver premises Vacant, seller of commercial building disclosed that tenant is in holdover and in default on a month to month lease expired years ago, with hundreds of thousands in back rent unpaid.

With just 4 days to closing, an open code violation has attached to commercial building regarding the tenant's business activities (vehicle rentals) encroaching on the public dead-end street between the commercial property and their nextdoor home which they are also operating their business out.

After closing, how can the seller ensure the new violation (that wasn't there til after going to contract/escrow) is addressed, and that relatedly, its default/holdover commercial tenant has actually moved out? 

They are not furnishing anything in writing affirming the tenant moved out nor addressing the open violation, simply stating they are now in possession and that the tenant is cleaning up in time for Closing. 

At very least, Isn't a commercial landlord still required to furnish a bilaterally executed 48-hour move-out inspection/checklist?!

(Or something similar that verifies Possession since the contract stipulates vacant delivery at closing)

[Matthew McKee]

Hate to say it but that might be a good sign to exit the deal. I’m not familiar with commercial tenet laws in CA but if they’re anything like the residential laws you might be buying yourself someone else’s problem.