Purchased a condemned property (without knowing it). Next steps?

[Veena Vaidyanathan]

Hi All, Noob out of state investor and this is my first investment property. 
I recently closed on a duplex in OH. Both units were being rented. However Renter 1 stopped paying rent during the ownership transition.

Property management tried to register the property with the city to start the eviction process.
Shocker: When they attempted to register, the city responded back saying this property is condemned.

It appears seller purchased this condemned property, renovated it however didn't get the necessary city approvals and permit. None of this was surfaced prior to the purchase.

PM is saying we'll need to evacuate both renters and run a complete city inspection which is going to take several months if not a year.

Looking for help here. 

Question 1) At what point should this have been caught? Can I go behind the seller or real estate agent with a legal action?

Question 2) Should i evacuate the tenants and proceed with city inspection. Any prior experience dealing with this situation. Both time and money?

Question 3) What should my priority be in terms of next steps here?