No more messing around.If they get out without issue, fix and clean whatever was done and thank your lucky stars you got out with minimal problems.

I do, however, see you regularly posting regularly on LinkedIn, in a similar fashion to your posts last year here on BiggerPockets.Normally, this would be an issue that I'd move on from and not waste my time on.

I'm an independent agent here in AR and I write a lot of rental property, with ~6 preferred markets and if the properties have some issues, age, claim history etc.

Ran into the same issue back in 2021 while living in Northern Cali.

Verify its condition and ensure the seller discloses any known issues.

Does anyone here faced similar issue ?

Second biggest mistake is failing to realize these construction loans allow draws on improvements meaning cash expenditures are required before the first draw can be issued.

The Fannie and Freddie programs handle this issue slightly differently.

The same issue? 

If you can find practice tests, that is my recommendation - that is what I did after taking the required time component and did not have any issues passing the test.