If deficiencies are noted later by the appraiser the repair will/could remain with the buyer.A good option contains the terms of sale, so you don't need 3 contracts, unless the option is weak on that aspect.

If you're deficient in either, you don't end up where you intended. 

You must be an attorney or hold a HUD Certified Credit Counselor's license to advise anyone in foreclosure, a Realtor may represent them as far as the property is concerned, but they are limited in what they can advise.It is difficult to deal with those in foreclosure without getting into personal finances, credit issues, potential deficiencies, explaining the foreclosure process or what a lender may do.

Line of title for the mortgagor is likely flawed and can take time for the bank to get a clear title or cure deficiency!!!

Not sure what you mean tolerance cure list, if you mean property deficiencies, the property must be in marketable condition, repairs less than 1% may be overlooked without escrow requirements for repairs.

(b) No action to recover damages for any deficiency, defect, omission, error, or miscalculation in a survey or plat shall be brought against registered surveyors or their employees engaged in the practice of land surveying who performed or furnished such survey or plat more than six years from the date of the survey or plat.

If the asset (the real estate) is otherwise a property that someone would desire, you might be able to monetize it despite having deficient title. 

Now, I have an offer based on the property value, my profit required and the value of fixing the deficiency blocking the sale. 

Did you know that Nevada (or perhaps just Las Vegas) previously allowed HOAs to foreclosure on units deficient in their HOA fees and the foreclosure wiped out the mortgage holders rights to the property?

Best practice for someone like me who doesn’t have the knowledge to identify deficiencies with great accuracy would be to hire a knowledgeable home inspector to take a really detailed look at the property.