I'm sure some things can be "grandfathered" in, such as 2-prong instead of 3-prong outlets, but I wouldn't think obvious safety issues would make the cut. I don't think all the crazy panels and sub-panels sharing fuses would be allowed to pass. And if it's true that the garage is powered off of a cable that plugs into and outlet in the house then runs underground, that most certainly wouldn't pass anything.
My grandmother's house just sold about a month ago(she passed away last year). It was built in the 1950s, and still had a lot of the original electric work. There were two prong outlets throughout the main floor, although she had breaker panel installed about 15 years ago. When the basement was finished a few years later it was all done with 3 prong running new circuits off the box-i.e. done as it should have been. Somewhere along the way, a falling branch during a storm also took out the main service going into the roof, and at the time the electric company re-routed it underground and into the main panel(in the basement).
The 2 prongs upstairs passed inspection last month just fine, although I'm sure the basement wouldn't have if it had been jerry-rigged(i.e. wired into existing circuits in the old fuse box).