Made an offer which got accepted on a house with an attached second unit in the bay area, were told that everything is permitted (verbally and in text messages) and in the disclosures there is no mention about unpermitted work. We check the city records just to be safe during our inspection contingency, and we see no documentation of permits for the second unit where our main concern is that it has a gas stove. We are planning to ask the sellers to lower the purchase price down $50k+ because we no longer believe the house is worth as much since the second unit cannot be rented without permits. Any advice? Should we pursue legal action if the sale falls through?