Yes - its pretty standard to require a cushion over and above the price on a portfolio loan, its to prevent the bank (lender) from adverse selection, i.e. the borrower releasing the better portfolio properties while keeping ones that are more troubled or not cash-flowing as well as collateral

But, just an FYI that it can and does happen.It's basically to "prevent money laundering"  

State law will govern, but typically if you aren't aware of any issues and you don't do anything to hide or prevent their discovery then there's no recourse against you.

There is nothing in the photos that could not simply be sealed with Kilz to prevent any further issue, as long as the water source is fixed.

But, you can also ask the existing owners/bank/entity... to tarp the roof (it doesn't look that big) to prevent future problems until it can be addressed directly! 

I know that over the range microhoods are popular but in my opinion they're an unnecessary expense.

Who are those people that should prevent this crime?

The most ridiculous thing they did was placing a charge of $900 on some emergency prevention best practice installations that were never communicated to us directly and clearly overpriced based on the nature of work.

If you overengineer your lease to include a bunch of extra nuisance tasks that you have to do, and you fail to do all those tasks, it looks bad on you as the landlord.To help prevent you from trying to implement every new idea, you must pass it through a well-defined filter.

For others, it is not the right fit and/or unnecessary.