If there is a lease in place you most likely will have to honor that contract. 

I am told it is not up to code.

@Joshua Dickman do you know where the federal tax credit is applied in the tax code?  

These issues are often bought up in opposition to granting zoning variances.I had run into these problems and employed the use of "expeditors" who are often architects by trade, but not a requirement, and would help if they know local zoning officials who has their own unwritten rules unavailable to the public.It was many years that I used them, but they charged $150 to do a walk through back then and go into building codes as well as zoning issues.

or even know where to start for these types of repairs. this in 46222 zip code

The tenant has failed to honor a permanent relocation agreement with the landlord pursuant to LAMC Section 152.05.10.

Also, will they make you bring the entire house up to current code or ?

Does anyone know how to find the average days on the market for a specific zip code without the MLS.  

Other issues with basement apartments usually revolve around codes like ceiling heights and sufficient egress.

Honor the contract you signed and close on the sale.