Can Medicaid put a lien on a property I have under contract?

[Cash Lawless]

Here is my situation. I have a property under contract as of 3 days ago in Texas. The seller is the daughter of the owner, with power of attorny, and the owner is in a nursing home with dementia. The seller has just informed us that Medicaid, who is paying for the owners elderly care, is demanding an appraisal on the property, and will not allow it to be sold under market value. Obviously we do not want an appraisal, and the property is already under contract. Does Medicaid have the power to legally enforce? And by closing this deal without an appraisal, are we at risk for any of the following, and are there any ways around this?

1. Violation of any elderly abuse laws

2. Medicaid putting a lien on the property after the deal closes

3. Medicaid opening a case against us 

4. Medicaid opening a case against the seller

5. Seller losing Medicaid support and causing problems for the family

Thank you all for your kind consideration and time in addressing this unique issue.