Newsflash: I’m under contract on a house and I know it has multiple code violations. What do I do?

Hello, new member here and first time home buyer. I’m under contract on my dream house currently, and I have until tomorrow to back out in the BINSR phase. I’ve been doing due diligence with the city to ensure all of the construction and renovations to the house have been documented and permitted. On Friday I discovered several potential city code violations, as well as two “non-permitted construction” concerns when reviewing with city officials. I’m looking for some advice. 1) the house has a newly added studio constructed in the backyard. When I measured the setback of the studio building in the field, it is over 2 1/2 feet too close to the rear setback. 2) the newly added studio is connected to the house with an enclosed patio. When I examined the permits on file at City Hall, officials told me that the patio enclosure was never approved or permitted by the city. In fact, the blueprint shows a handwritten note from the inspector specifying, it was not permitted. Additionally this inspector had drawn Xs through each visualization of the covered patio in the designs. 3) the Home has a carport that has been converted into a garage. When I was visiting City Hall, the official confirmed that there was never a permit granted for this conversion. The current owner refuses to do anything about it because they bought the house with this conversion. 4) the patio enclosure also prevents egress from one of the homes bedrooms. When I signed the contract, it was for a three bedroom home, but in fact, city officials confirmed that the home can only be considered two bedrooms because of this fire code violation. City officials suggested that I apply for a permit to have the house inspected by a city inspector. Ive ordered the inspection as a means to protect my investment, but their inspection may come too late leaving me in a difficult position. (A) if I buy the house as is before the inspection occurs, I am signing myself up for all the headaches. (B) if I cancel the contract, the current homeowner will have to deal with this inspection, including the possibility of needing to take the home off the market to address the concerns. The current owner has already moved their belongings to a new property that they are closing on at around the same time. It’s not my intention to cause the seller this trouble, but I don’t see any other way to proceed with the transaction. Yesterday (2 days before the BINSR negotiation period expires) I documented all of the concerns and violations and asked my agent to send it to the seller. In the document I spelled out the codes violated and mention that I’m willing to move forward as-is for a discount on the purchase prices. This way, I would inherit the liabilities of the violations, but would have money to address them. Lastly, I can tell my real estate agent doesn’t like the situation one bit. I don’t want to ruin their reputation by causing trouble for the seller and the sellers agent too. I suspect my agent has never experienced a situation like this one and is fearful for their reputation. Any RE professionals out there who could share some advice — please do so. Like I said, I love the home and time is running out… thank you so much 🙏🏼