But this is a very expensive and arduous process:  For a light switch, you've got to literally bore a hole down 5 or 6 feet of wood with a special bit, to run the wiring. 

I'm having a heck of a time just getting the code department to do their job on a flip, and it's burning some major pocket holes. 

@Lisa Connor it sounds like you're trying to fit a square peg in a round hole - and then getting frustrated it's not working!

But they also have crews to keep busy, etc, so sometimes they won't grind on price as much if they have a hole in their business plan. 

Escrow knows that any monetary encumbrances on title get paid off through the closing, and that's required, unless a buyer says they are willing to take title subject to any of those.  

Hi Olga,Speak with an Asset Protection Attorney that understands real estate, and then go back to your Tax person and get a cost estimate to handle the accounting for it.Winging it yourself might leave some easily exploitable holes in your protection.Good Luck!

The value I added was giving him a lifeline and pulling him out of the financial hole he had dug.

If closing gets delayed, you could be in a deeper and deeper hole. 

I like to bury them approximately 12" deep and terminate them in a lawn box, which is essentially a pipe/bucket that sits underground with some holes in the bottom and/or sides that the water drains out of.

Can one find loop-holes to argue against, sure, but at what cost?