Quote from @Michael Smythe: @Sean Gallagher legally you are correct, but many tenants do NOT know this.We take over properties all the time and close 80% of existing tenants sign a lease with us.True! 

And as far as legal—an attorney becomes essential once you're ready to finalize terms with either an HML or private lender to make sure everything’s secure.Hope this helps!

I also advocate using the 95% LTV versus the more restrictive 96.5% FHA LTV.

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.

This sounds like it might be a pipe dream based on everything I'm reading about restrictions directly in St.

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

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.

However, many lenders and insurance companies are tightening restrictions and premiums for these types of properties.

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.