The REO title company  typically will Not search for these unrecorded liens and they will exclude them in their Exceptions, Section B on their title policy/commitment.As for the “Warranty deed” here in FL we have a Warranty Deed (in which the seller is agreeing to defend against All title claims/liens/defects) bit we also have a Special Warranty Deed (which is what reo’s use, that only guarantees against title issues While The Current Owner Owned It, nothing that occurred before.Always use a Local title co. to the property......different cities/counties have different depts and ways these violations may be obvious, but a local title co know where to look.

The seller mentioned if anything is wrong with the roof he would file a claim to fix it.

That means the first tenant who is verified as being who they claim to be and who is willing to sign a short term lease and pay the last month's rent and, for one unit, a security deposit, gets the unit.

I've designed new ground up custom homes and small additions/renovations projects.

That could be a big problem if a claim ever arises. 

I have never had a claim on any property of mine. 

Just work from home and claim the safe harbor home office deduction.

Our issue is that the shape of the counter top is very custom and to replace it would be custom. 

Especially since, like you said, their E&O insurance does not cover me as a principal and if anything, God forbid, happens it will be my company's insurance handling the claim.

Licensees should not distribute smoke detectors with removable batteries to clients or customers after April 1, 2019.