If they will "cut corners" by not getting licensed, how well will the quality of work be?

Then you can immediately put a loan on. the free and clear property and pull that cash out to get close to what you need for the ADU. 

There will also be many homeowners who have had the properties in the family through generations and own free and clear but now still need to obtain a construction loan to rebuild. 

You will want to consult with a lawyer.In regards to your last two questions here's some background on what makes a contract valid and enforceable:Offer: A promise to do or not do something within a certain time period Acceptance: A clear and direct statement that all terms and responsibilities are accepted Consideration: A legal and adequate inducement given in exchange for the promise Capacity: The parties to the contract must have the legal capacity and competency to contract Awareness: A party must be aware of the contract Legality: The contract must be legal in the jurisdiction it will be operating in***Not legal advice*** Steps I would take: -Review contract in detail to understand each counterparties responsibilities (if you are not aware)- Email a copy of the lease to each of the tenants listed on the lease and reiterate lease expectations for termination notice, rent payment etc. - If the lease was signed via Docusign (other esign may have same ability) - you can go to the envelope, go to history and view the IP addresses for each action taken.

I am not clearly following the the refinance bit.

Taking real time notes on deficiencies allows for clear understanding if the items make their way to a buyer repair addendum.

Their clear incentive is to bet on falling interest rates between now and debt maturity.A small handful of owners are forced to sell due to a looming balloon payment that a refi won't cover, but you're not going to find one of those by driving the market when any commercial broker can just look up properties on that basis and start making calls. 

That reads to me very clearly that the granting of any legal or equitable interest in or to a property secured by a mortgage can trigger the DOS, which would include any lease option, land contract, contract for deed etc. as it clearly states in the defintion. 

@Brian Rocha It’s clear why most lenders insist on including rehab funds in the loan, and all of our partner banks follow this practice for fix-and-flip loans to minimize risk and meet securitization standards.

After I cut he and his now wife loose I sold the property for more money 30 days later after we they made fake jim.bakker promises for 45 days.