Is not this consider illegal immigrant?

Maybe illegal, but wasn't worth the fight. 

Are there too many problems with illegal activity to make it worth the effort?  

Tell them you made a mistake and your board of advisors told you that without a complete background check you were opening yourself up for an illegal discrimination claim.

I one time offered a modest buy out to a tenant of an illegal unit ($5,000) and found out that they were planning to leave once they had saved up $800 for the security deposit for a new unit - they would have left on their own or perhaps for a much more modest amount!  

(This is what I use in California) The concept is to keep the fact that the property has been transferred private.The sales transaction remains unrecorded i.e. the deed is not recorded or the contract of sale or the financing agreement.The transaction is maintained in the records of a settlement /escrow management companyEnough documentation is recorded to protect the seller and buyer in the chain of title without making the fact that the property was transferred public record Existing loans, taxes, insurance are paid by the buyer into a collection account, which in turn pays all the accounts required to service the propertyRecording a deed or contract is not required in most states to make a valid transferNot disclosing the new sale to the underlying lender is not illegal in most statesKeeping the transfer from the lender is not a crime or against the law.

The lot I am interested in is "landlocked" and has no proper 'frontage' to a county maintained road/ingress/egress.The Warranty Deed on file with the county does indicate an easement of 15' width to/from the county road, but the county requires a 20' width easement to be considered legal access, therefore the person I spoke with at the county zoning division/land development division believed that the lot was an 'illegal subdivision' and therefore was un-permittable for future build.

Specifically, these agreements make the buyer responsible for the utility bills incurred while the house is illegally occupied.In my experience, most of these "owner occupied" houses aren't actually occupied.  

On $150k or better deal, I'll pay it.More troublesome is the last sentence where the agent is suggesting to try and do deals outside of their broker, illegally collecting a commission directly somehow.

As a matter of fact, any seller financing should be avoided (in their opinion) unless you are a licensed mortgage worker.