Our PM has previously said they must have properties they manage up to a certain ‘standard’.We do not want to pay legal fees for Small Claims Court.Any help is appreciated.Stephen E

A standard landlord policy, or homeowners policy, will likely not cover you if you have a claim.Claims do happen. 

Our standard practice is to show tenants copy of deed, showing new owner, and a copy of our management contract to show them that new owner legally hired us - so, we're their new PMC. 

Can you make the payments on the mortgages while renting, even though you are under water?

In 95 the construction standards improved and they have been improving more and more every year since. 

There are lots opportunities in easy bay township or downtown Condos (where str is allowed.) direct west of TC has lots str experience opportunities (water front/ farm house , wineries), direct east close to Williamsburg has great opportunities even for long term summer rental to the horse show participant (June to Sep).

I believe that under a standard title insurance policy, building code matters, zoning and other governmental restriction on the use of the property are excluded from coverage so unless you purchased an extended form title policy there probably is no coverage, but it never hurts to submit a claim. 

This covered all sides.Just make sure that the final payment includes a standard lien waiver just to be on the safe side.There are platforms that manage this process as well, we used LevelSet.

It seems like this is highly shark-infested waters, with lots of scams and scammers, and the actual information is difficult to obtain...

For example, a distressed house may cost 200k and if fixed sells for 350k, but it needs 100k in work so the spread is 50k and then work in all the holding costs and closing costs and if there is any hiccups you are under water.