I have read misrepresentation on the seller disclosure form could lead to lawsuit or criminal charges?

If you wanted to resell, the single family with an in-law suite would probably appreciate better and be easier to sell down the road as the buyer pool is bigger (homeowners, not just investors).

It's a unique property in that it's a SFH with a full in-law suite in the basement (2 bed/2 bath with full kitchen) and a separate addition that can be blocked off and used as a private room STR. 

Hello! I live in CA and I'm a passive investor in two rental properties. For each, I'm named on title as a tenancy-in-common partner. My partner is also named on title, and his property management company does ALL rep...

It's just a paper that lists the payments each tenant made but it keeps the owner honest as they know you are relying on that in making the purchase and will have a lawsuit against them if they lie.

Perhaps a broader set of questions: In general, what stops a bad person from claiming to have a disability in order to hide behind the potential of a lawsuit? 

PRPs are specifically designed to enforce your legal exemption right to protect assets from lawsuits and attacks.ERISA-oriented plans like 401(k)s and RIRAs seek tax deductions for contributions.

PRTs are specifically designed to enforce your legal exemption right to protect assets from lawsuits and attacks.Aretax-oriented plans like IRAs seek tax deductions for contributions.

Then possibly instigating a lawsuit and counter suit just for me to have to go and spend 10 minutes in court to prove it's invalidity and never see my court costs refunded to me because Texas...Comments?

Lawyers were involved but no lawsuit.