Long story short, they decided to withhold their rent until they felt this situation was remedied (long story short this issue has been cleaned and closed) My question is, I didn’t know that tenants could withhold rent for certain issues.

As long as it is the rare exception and is quickly remedied, nothing to worry about.

It seems backwards that the seller would want dry rot repaired and mold remediation as that would cost you money.

Unfortunately due to COVID the City is taking several months to turn around recordings and several weeks to turn around lien certs... so this issue, now that it is known, could still take a while to remedy.

He offered to remedy the situation in a certain way, but it was my fault too.

I asked my attorney to request seller to remove oil tank and seller came back that they're prepared to remove oil tank and remediate any contamination but requesting to buyer (myself) to contribute 50% with a cap of 5K.

My company does mold remediation and we find that there is so much moisture in bedroom walls we can almost squeeze the drywall with our hands and get the moisture to drip like squeezing the water out of a washcloth.

Late fees, inspections, notices of lease violations, charging them to remedy issues, are all tools you can use to train your tenant.

The costs involved to fix this situation included mold remediation, potentially replacing some of the water damaged studs/joists, and replacing the drywall.

This is why you need to check with a lawyer first.If the lawyer gives you the green light to evict, ask them about remediation.