He also said that the real estate code of ethics states that inspection findings that affect the value of the home must be updated on the MLS.

Then repeat through the process.

The key to success and to have repeat buyers work with you is to negotiate new terms techinically the buyer has the right to renegotiate the deal adter you assign your rights but if you did a good job then you should be ok.

The FHA appraisal won't affect non FHA buyers.

Wikipedia California and federal courts have repeatedly identified Rutter treatises as "well-respected" interpretations of the law, which may be cited as "redoubtable" authority.The California Court of Appeal has treated the existence of conflicting Rutter Group authority as strong evidence that a legal question was unsettled.thanks,Matt

How would this affect our personal credit and borrowing power?

History does repeat itself and as we have more disparagy I think unreast is going to become more real.

I don't think it would affect his behavior if he did.

What I am not sure of is what can be built there based on the zoning regulations and architectural integrity of the lots... which, if known, would affect the value.

It doesn't affect the banks requirements.Banks have three basic requirements for an investment loan:1) credit score.