I've also since discovered that the licensing, bonding, and insurance of his remodeling & renovation firm have all lapsed.

My point is that I expected there to be a new one-year lease, not just a fee earned for a conversion to month-to-month status because the lease lapsed on its own.

Being a certificate holder means that you will get a notice if the policy ever lapses or is terminated for any reason.All apartment buildings in the metro areas require this of their tenants.

Same for insurance - if the homeowner lets their insurance policy lapse, the lender will go ahead and take out a policy for the home, adding the cost to the delinquent amount of payments owed.  

I was a realtor for several years but I let it lapse.

That's because there are no tax consequences to the seller until the option lapses or is exercised.If the option is exercised by the buyer (that is, the buyer buys the real estate), the sale proceeds for purposes of determining your gain on the sale of the land includes the amount you received for the option.4.

@Kevin Martin What I believe your lender is referring to is they want to see the full years premium paid in full which is typical of bank mortgage requirements.Bank underwriters don’t like monthly payments on insurance because if you don’t pay the policy lapses and if it burns down with no coverage they think it’s likely you won’t pay them back.

, but that should be obvious) Now they did let their policy lapse so they were responsible for the hotel and storage.

Some of the agency’s aren’t issuing new policies during Covid, some of them don’t like that the ADU is detached from the primary residence, and most of them won’t insure because Unit B is currently under construction.State Farm in Bakersfield is willing to cover once Unit B has the roof completed which is scheduled for in 2 weeks which is after my current coverage lapses.

In my experience if your inspection period lapsed and the Seller made no specific representation in the final contract then you are unlikely to have recourse.