This is my first time posting here, and first time going through a lawsuit! 

Lawsuit waiting to happen. 

A lot of "fraud" lawsuits happen because people try to cut corners, don't understand the process or weren't clear about enough in their agreements.

This means that you will probably need to pay registration and filing fees in at least 2 states if you don’t buy CA property as a CA resident.Any lawsuits should be limited to the assets of the LLC and not your personal assets (assuming you run the LLC appropriately and the corporate veil is not pierced, some debate as to SMLLC).

On many posts here at BP, I see advice- that if followed, would result in a slam dunk lawsuit for the other party. 

A lawsuit waiting to happen. 

Granted, this would require the buyer to determine permits weren't pulled and file a lawsuit;  but you would lose the suit by default. 

In court, you don't want to be telling the judge you told them a specific amount or gave legal or tax advice, of course.In my humble opinion, you should always transact as though God is watching and as though this is the transaction that you will hear from a year or two down the road in a lawsuit.

I think I need to do a "Joinder" in the lawsuit - which has 24 days before the statute runs out 

The seller has become a lender & would have to do a foreclosure or file a lawsuit for specific performance or do a deed in lieu.