My wife and I are under contract on a flip we purchased last summer. The buyer's lender, Wells, wants the HUD from when we purchased the property. Our lawyer has been pushing back as there doesn't appear to be any legal reason given for doing this. The only explanation we've received is as follows:

"The justification for needing this document is we need an acceptable document that confirms purchase price paid by the sellers for the subject. We need to verify this is truly a flip transaction and all those documents once reviewed by our quality review department will indicate if the property is truly a flip and how we proceed. If all of the documents are not provided, we will not be able to approve the property and the transaction cannot continue." 

We're not trying to derail our own transaction, but is the case of a lender run amok with random paperwork requirements based on nothing more than a checklist? Has anyone else ever had this requirement forced on them, and if so, what did you do? Why wouldn't they just use the tax records?