Help with inspection notice

[Wick Ra]

I recently purchased a 2 flat with basement. The previous owners had a problematic tenant in the first floor who was not paying the rent and ended up opening up several false complaints with the city and eventually left the apartment when the previous owners started eviction process. 

The basement is a finished basement and is empty. there’s no kitchen in the basement either. I recently received a notice from the city on the previous owners name to arrange an inspection of the basement as someone reported to city that it’s occupied and it’s not.

I would appreciate if you could share how to handle this? Will the city create any other problems when they inspect the basement? 

Thanks In advance !