------------------------------------------------------------------------Here's our current guess: "The builder's plans and the build may not line up perfectly, so the buyer could sue for breach of contract or a similar claim."

They were taxing as a fourplex, but the CO said it was a triplex.I found out when I went to try to refi with the bank.

The policy was $2200/year ($1.1M Bldg coverage and $1M Business liability coverage in this apartment LLC) and I haven't had a single claim in my past 5 year history.

Finally, check with the Town to make sure there are no municipal liens, Make sure they're on Town sewer, check with the tax assessor to see how many bedrooms the tax office thinks there are, (important if you are flipping) buy ok to have more bedrooms if you are planning to buy and hold.  

This designation doesn’t cost extra or give the manager access to insurance payouts but ensures you and the property manager are aligned during incidents, such as tenant lawsuits or insurance claims.

(They claimed thousands for electrical using what appeared to be a fake electrical company, and they never had someone out to even check electrical beyond the general.) 

and the property had a private dwelling value appraisal much higher than the public property appraiser claims. 

If your objective is to reduce your own tax burden, you are in essence confirming they have no valid AP claim.

How is it for preparing taxes? 

You can always use a software like Turbo-Tax and follow the prompts.