In case anyone else ever runs into a similar situation or is curious about the outcome, here is what has transpired since I first posted. Dropping the whole "friend" shtick :P
The property has a number of issues and a long history of code violations due to unrepaired tree damage. I purchased the house in this condition with the intent to rebuild it. I assumed there were some recorded violations, but the previous owner had removed the placards placed by Code Enforcement, so I was unaware of the severity of the status until last week, when I discovered the placards and an associated court case in the ACCELA database. The charges were filed against the previous owner the day *AFTER* I acquired the property, so it was a little murky as to if I had any exposure or liability. One of the officers I spoke with indicated she believed that the charges in the case could transfer to me at the discretion of the judge and that I should plan to be in court for the scheduled hearing, while the solicitors at the court would not give me any information as I was not named as a defendant in the case.
I registered the property as vacant as required by the COA. I made many calls to COA Code Enforcement but what really helped was to find the last dated inspection of the property using the ACCELA site and getting the name of the most recent Officer assigned to the house. I called back and asked for her desk AND cell phone number, since they are often out of the office doing inspections. She was *VERY* helpful and happy to work with me to handle the issues at the property. She agreed to meet me the next morning and explained to me the following:
When a house with existing code violations is sold to a new owner, the prior violations are attached to the previous owner but the Placards are attached to the property. What this means is that the prior owner is responsible for the charges pending in Fulton County Magistrate Court for the code violations, however, those Code Enforcement cases will now close and be reopened as new under my ownership. The Placards (which stipulate the hazardous conditions) remain on the property until I have made sufficient repairs or improvements as to qualify for a new certificate of occupancy. Even though the charges were filed the day I took ownership, they are specific to the prior owner's failure to address the condition of the property and are not of my concern.
Since the house had Placards designating it as hazardous, neither I, nor anyone acting on my behalf, could be permitted on the property without a Conditional Letter from Code Enforcement. She was able to issue me this letter once I filled out the form to request a demo permit from the Office of Buildings - I did not have to submit this permit nor did I need it approved to obtain the letter, only to fill it out and sign it to show my intent. As the officer assigned to the property, she had also already received my Vacant Property Registration. We agreed that I needed to remove the damaged portion of the house and seal off the remainder in order to bring the property into compliance until I am ready to rebuild.
I won't go into my adventure at the Office of Buildings, but suffice it to say, I still do not have a permit to demo the damage. I'm working on it with the various officers of the departments involved but what I wanted to remark on was the helpfulness and transparency of everyone involved from the City of Atlanta. It is daunting to come at something like this for the first time, but everyone I spoke with (even the inspector from the Office of Buildings who had issued a stop work order on any cleanup) was genuinely helpful and kind. I would encourage anyone even seeking information about potential projects to visit in person and not be dissuaded by horror stories about the process.
Thanks to @Michaela G. and @Rick Baggenstoss for their helpful advice! I'm cautiously optimistic about the future of the property :)