@Joyce Jackson I’m glad to hear about the resolution!

Don’t expect a resolution anytime soon. 5 months went by with a blink of an eye and we have pretty much made no advancements in a long term solution.

What issues have come up with that property, that if you were a few hundred miles away, would be a considerable hardship on you to manage the resolution of the issue? 

After inquiring with nearly a dozen people (realtors, lenders and investors) none of them were able to provide guidance on a resolution. 

Of course under Proposition 21 like minded municipalities could pass similar resolutions.

In fact, their permit department website says "It would be easier for us to tell you what doesn't need a permit, here's a list:" (And it's like 9 things that don't need a permit.)I did not specify that the electrician should pull a permit in the Resolution, but did specify that they be licensed.A licensed electrician performed said work without a permit. 

If you make improvements to the basement and don't bother legalizing, just be at peace when it's caught at buyer's inspection and they will either accept as-is, demand it come to code as an inspection resolution, which you can decline to do, and keep showing till you get a buyer who doesn't care. 

Hopefully the experiences, with their resolutions, will be shared here on BiggerPockets for all to learn.You are correct in that you can take the tenant's past due utility bill out of the deposit.

BUT that empty lot is NOT going to be transferred at the close so ours may have an interesting $$$ resolution.

They will work with you and the professionial agents to come to a resolution.