They may just need to have it inspected to ensure that the work was done properly before they can update their files.

I'd say go after it and just do your due diligence to ensure there isn't anything you are missing.

This is why it is important to have a CPA who knows what they are doing.And yes, the lifetime exclusion will ensure that you do not pay any gift tax.

But still...The real main point I want to ram home is: in future, please try to ensure that ANY property you buy, whether it's for your primary or for investment, will NOT leave you underwater if you suddenly want/need to sell!

How can I ensure that the seller will take care of the violations and pass the re-inspection after closing?

Our 2018 goals are to ensure that my and my partner's trusts are properly funded with the help of our estate attorney.

Luckily our market blew up after I bought the house at a very low price so I just sold it this may and made a great profit, however, I am already budgeting for some east coast properties and I am a doing this all by myself as well so I need to ensure that I can take a loss without having to run back to mom, not that she would help me out haha. 

Also for a MF property it is critical to ensure the property is currently zoned for MF. 

Therefore, you want to be prepared for any type of potential lawsuits to ensure that your assets will be well safe-guarded and your hard-earned money and investment capital will not be taken away from you.

So I would emphasize how you'll hold their hand through the process and that you have the best team working for them to ensure they have all their questions answered.