As the seller I would pay for the energy audit, do the analysis on the work to be done (cost vs savings) and then market the home with a prepackaged improvement contract that would meet lender guidelines (solar, EE windows, etc). 45 day close to allow for enough time to do loan and obtain permits, occupancy COE+2. 

The first thing I look at before viewing a property is the permit history.

Examples include BuildZoom and Zonda (formerly Hanley Wood).Property Records and Permits: Monitor building permits and property records.

We're getting judges that are weighing the facts of each eviction case with much more consideration and permitting tenants to stay in some situations where they would have not been able....so landlords raise rents, tenants can't pay and have nowhere else to go...property owners evict...judge needs re-elected...tenant stays.   

St Farm is probably going by the last date they see for any Claim or Permit (if any). 

I am newer to this forum so apologies if I am posting in the wrong place but I have a couple questions about purchasing a SFH with an un-permitted ADU.

We require all tenants in our lease agreements to have renters insurance that specifically covers liability if their dog bites someone on our property (for those breeds of dog we permit a tenant to keep on the property). 

This includes verifying income stability, rental history, and conducting background checks as permitted by law.

If someone dies in the bedroom and there is not an egress window, you face serious liability.Ultimately you will need to pull permits, so talk to the permit office.

And of course there's the standard closing costs of the loan, initial insurance payments, permits etc.