Again, that's what should happen, w/o having the benefit of having read the documentation.

I am in the process of getting all of the documentation together currently to get preapproved and am looking to pull the trigger on my first home this summer.

Granted one has a great credit history and a sum sufficient for a down payment. 

Or was the work done with permits and proper documentation?  

The area is more C+, bjut I'd never recommend buying a property with tenants in place unless there is (a) a strong and documented record of timely rental payment; (b) you have the opportunity to speak to the tenant about the condition of their unit and the property in general prior to the purchase; (c) you run a thorough background screening on the tenant to make sure they will pass your standards for a resident.Agents often seek to sell properties when they should strive to build relationships by offering good investments.

I have documented our experiences in the investor deal Diaries forum under the name project BP.

(tax history, sales history, neighboring home prices, etc)    Hope this helps! 

Did he sign any documents swearing that no work was done on the house without permits?

For businesses with a 2 year+ history that can go full doc can qualify for $150,000 lines.Ideally 730+ scores on average gets access to LOC programs.

I will have her review the lease and other documents.