And I should pay.Sounds like you managed to damage your tenant's car in the process.

NB: I realize I got very lucky there wasn’t any damage or serious flooding or electrical or plumbing work to do.

If at some point they become damaged beyond a threshold (like 50% for example) then you would need a permit to rebuild the damaged unit, and when you go to pull that new permit THEN you'd be subject to modern zoning overlays and no longer grandfathered in.As to what to do with this information, I can neither confirm of deny anything above.Burn this after reading. 

I had not asked for the difference in payout when we put the policies in place.ThanksHi Andy - a replacement cost policy will cover the cost to replace damaged property with like kind and quality.

then you can collateralize your owner contract to pull some if not all of your cash back out of the deal .. either way sounds like your going to be spending some money on attorneys and you will have some liability from who you sold it to if they get harmed or damaged..  

Even if it has a tenant you will run into issues: wind storm damages roof/siding, water heater needs replacing, dishwasher dies, etc.If you live in a place where you rent the spare bedroom it will be easier.

Eviction can take months and that person can end up damaging your property.

Also, I haven't heard of liquidated damages for contractors of this small scale before.

That setup is what leads to causing actual damage to sellers, when wholesalers tie up properties and don't deliver.  

Many of the wood framed windows are water damaged from being left open when it was raining.