It was started in my town because landlords were not keeping their properties up to code and the town felt like they needed to intervene for the safety of the tenants.

@Guy GimenezHere is a media articleAUSTIN — Home mortgage scams in El Paso and Austin have prompted three senators to propose legislation to curb the abuse and protect homeowners.Senators Judith Zaffirini (D-Laredo), Kirk Watson (D-Austin), and José Rodríguez (D-El Paso) today filed several bills to address “wraparound” home mortgage scams, which leave homeowners at the mercy of a middleman who may or may not keep up with the mortgage payments.In one particularly egregious case in El Paso, a wrap scammer absconded with nearly $2 million from 200 families before the Texas Department of Savings and Mortgage Lending was able to intervene.

Instead, the landlord must look at the type of crime, age of perpetrator at time, and history of rehabilitative acts in the intervening time period.  

If the value of the property in question rose during the intervening period, the equitable titleholder would keep the difference between the initial purchase price and final sale price. 

Second, the moving fee as a income to the tenant is taxable. 10% - 30% will go back to State and Fed and this is nothing the Commissioners can intervene. 

Should I intervene more/get involved? 

A 300k offer with a 99 percent chance of closing is much more preferable than a 315k offer with zero percent chance of closing.Also the listing agent should be staying abreast of everything going on on the buyers end of things so that they can intervene when there is a problem.

Verbal agreements are not unenforceable when it comes to real estate so now you'll have landlords simply backing out and pocketing the additional rent and the tenant will have no recourse.What is it about lease options that states feel the need to intervene?

However, in this case, the upstairs' occupants have created an unhealthy condition that will be ongoing if not remedieda and this requires the HOA to intervene. 

It's mutual among all parties and you will have to explain and intervene to avoid conflicts that could ultimately escalate and require you to take action.