I think there is value in ADU as long as it is legally done and can be legally rented.On the sale side a benefit can always be an in law suite.

They could make legal arguments about hardship and/or off-sets for non-compliance by landlord, but this would require posting rent or coming even with rent.

Do the legal Tenant laws of eviction still fall under a room rental?

The AP has to be open, notorious and hostile...those terms have a legal meaning and essentially it is that you as the owner have been fully deprived of your right to the property.Absent those items above, it sounds like at best they have another legal right which is a "prescriptive easement".

I recommend legal advice from an attorney.

@Tim Holt Come February, it's legal to create an ADU by-right on any single family property in the entire state.

If they have an legally binding agreement, you need to honor that agreement and pay the fee.If you failed to mention to the agent that they are going to get paid, and then explained how, of course they won't present the offer.

Other than that, the NMLS specifies no restrictions on the matter. not sure its NMLS who actually regulates it NMLS is just licensing registration I think its still the states that regulate..thats why you need  a MLO in a certain state then register with NMLS if you have a MLO..

Do not rely on it for legal advice.

We also disallow Level 1 sex offenders to the extent we are legally allowed to.