These "good ole' boys" doing the cheapie inspections SHOULD be covering the same scope of inspection for their buyers that the full-scope inspectors do OR clearly explaining the difference to the buyer BEFORE the taking the job. 

Best to think about your goals and objectives and maybe share those and others can help match the options with your goals.  

I would just have to explain when and why?

How would this be declared/explained to the IRS...or is this in any shape or form prohibited?

I think we have enough facts - as stated by the OP - to advise the OP to back out of this starter property.One should make investment decisions based on objective facts.

And just in case here....make sure your lender knows about condos being "warrantable" and that they can explain this to you in simple terms.

Can anyone further explain what she means?

If the Seller does not have liability for the bill I would contact the utility provider and explain your the new owner and see if they will waive or reduce the amt the bill.

If they're unhappy because some other child is being selfish with some of the equipment in the park, it is not the time to distract them with a treat but rather to teach them empathy and how A) some kids don't learn to take turns, and that's an objectively bad thing, and B) why I demand that he takes turns himself rather than hog the favored piece of equipment all to himself. 

Once they reviewed my return I had about 3 more weeks of homework to explain why I created a new company in 2020 . . .