I have a separate interest bearing account for security deposits as required by my state laws.

its an insurance issue. not much else to do.. 

There's a good chance the issue(s) you face has already been discussed and answered.Ask questions in the appropriate forum.

**Letter of Intent (LOI)**: Though not legally binding, an LOI can outline the basic terms and conditions of a potential deal before the final contracts are drawn up, ensuring that all parties are on the same page.It's always wise to consult with a real estate attorney to ensure that your contracts comply with local laws and protect your interests.

Another strategy you can look into is building out an "in-law suite" or ADU.

Rent control laws are market specific.

California law requires abandoned tenant property under certain circumstances to be sold at public auction.

Withoutknowing the details I can not suggest which would be right to add on.Several you should pay attention to are:- Ordinance & Law: Provides additional building coverage to deal with rebuilding costIncreases due to changes in Zoning or Building laws- Personal Injury Liability: Libel, defamation of character, wrongful imprisonment, etc.

Because if had I been informed of the issue prior to Dec. 12, I would have been able to back out of the transaction and walk away with my money.

Aloha,There are a couple of issues here.