Slightly different scenario, as the bank mistakenly had the incorrect legal description on the original mortgage, released it from that property but did not properly re-record against the actual property. 

Any help on what I’m looking at incorrectly would be appreciated.

Any help on what I’m looking at incorrectly would be appreciated.

:Here is info on CA for you Tenant's Right to Break a Rental Lease in California | NoloFrom what I understand (and this may be incorrect), while there is no law that says you cannot have a lease break fee, the law does say that you can only recover your losses. 

I was hoping to clarify something, can someone correct me if i am incorrect?

The house is in okay shape--some nice updates, a lot of quirks, original windows, creaky floors, etc. 

The bank that I'm working with for the HELOC is also looking into this to see if their systems pulled incorrect information.

@Andrew BoothActually that is incorrect.

or am i understanding things incorrectly?

Some tax professionals still continue to advocate s-corp for agents, but it is just incorrect in most instances.